Tuesday, December 1, 2015

DIFFERENCE BETWEEN STOCK AND SHARE

Details of stock

Stock means converted fully paid-up shares. Thus converting fully paid-up shares shareholder becomes stockholder. Although shareholders become stockholder they have the right as dividend as a shareholder. No company can issue stock directly.

A stockholder owns Rs. 1000 worth of stock means it consist of 100 share of Rs. 10 each. Though the investment in the company remains same it described differently.

Difference between stock and share

SL. NO
STOCK
SHARE
1
Stock is a consolidated value of share capital
Each Share in physical form have distinct number.
2
Stock is consisted of fully paid-up share.
Share may or may not be fully paid up.
3
Stock have no nominal value
Shares have a nominal value.
4
Denomination of stock varies
All shares are equal denomination.
5
Transfer of stock in fraction is possible
Transfer of share in fraction is not possible





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