Differences between Shares and Stock cs executive security capital market notes
Differences between Shares and Stock:
Shares differ from stocks' inmany respects. The maindifferences between shares arid stocks are:
1. Shares may be fully or partly paid. But stocksare always fully paid.
2. Shares have distinctive numbers, whereas stocksdo not have distinctive numbers.
3. A share has nominal value, whereas a stock hasno nominal value.
4. Shares are always of equal denominations orvalues. But stocks can be of various denominations or values.
5. Shares can be issued not only by limitedcompanies having share capital, but also by unlimited companies. But stocks canbe issued only by limited companies having share capital.
6. Shares can be issued by a company originally.But stocks cannot be issued by a company originally. But the stocks cannot beissued by a company originally. Only fully paid shares can be converted intostock later on.
7. Consent of the shareholders is not necessary forthe issue of shares. But the consent of the shareholders is necessary for theissue of stocks.
8. Shares can be transferred only in round numbers.They cannot be transferred in fraction. But stocks can be transferred infraction.
9. Registration of share capital with the registrarof companies is necessary before the issue of shares. But stocks can be issuerby just giving a notice of conversion with the registrar of companies.
10. The holder of shares is a member of the company.But the holders of stocks is not necessarily a member of the company.