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Stocks vs Shares | Are they Both Same? | Know the Top Differences! - YouTube
Channel: WallStreetMojo
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hello everyone hi welcome to the channel
of WallStreetmojo watch the video
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clicking the bell icon friends today we
have a topic which was stocks versus
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shares
I mean stockholders versus the
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shareholders what is the difference
between them okay let's let's discuss
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this details format and let's
understand the nitty-gritty of this
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see there is a slight difference between
the stock versus shares when we talk about
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the two certificates that we
see in terms of the ownership of the
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company or companies and we call this as
the certificate of stock and we call
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this as certificate of shares now when
an owner of the equity maintains the
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ownership of for a particular company we
would call it as certificate of shares
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but an owner of equity owns when he owns
a certificate of several companies we
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will call a certificate of stocks so we
can see that see the slight difference
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in the particularity and let's take an
example to illustrate the stockholder
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versus shareholder let's say there's a
guy for mr. tree house and he has bought
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a certificate of youth Inc
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certificate of youth Inc and in this
case we will call this as a certificate
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of shares and not a stocks since we can
see that it's mr. tree house has bought
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certificate from particular company now
if you see that mr. tree house owns
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certificates from several companies we
would call them as certificate of stocks
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and not shares so that means we can say
that the share is smaller and stock
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share is a smaller unit of stock you can
see that since you know share is a
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particular certificate of a company it
can be issued in three ways the first
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way is at the par value the second is at
premium
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and the third is that discount at par
value is this the case of it is issued
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at Mir Mir agree and you know in case of
premium in this the shares is issued at
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above its greater than the face value
and in case of the discount the shares
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is issued below that is less than the
face value so the shares can also be
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divided into two types the first is the
equity shares and the other is preferred
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shares so as we know in all the equity
shares have the voting rights the equity
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share has the voting rights but are paid
after the debt holders and the preferred
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preferred shareholders in the preferred
shares shareholders get the preferential
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right gets the preferential rights and
all forget preferred shareholders over
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here the preferred shoulders gets a
preferential rights and also gets speed
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first
after the debt holders so since the
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stock don't mean and the share the
shares at the particular company we
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understand stock as a generic term let's
understand this with the help of the
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infographics let's understand this in a
detail format the stock was as shares
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what is the meaning first stock means it
is the larger form of the share right
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it's like shares are the part of stock
we can say and share is a smaller unit
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of stock stock is the larger form of
share and share is a smaller unit of
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stock it's quite understandable now what
is the relationship with the owner see
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when the owner owns the share of a
several company we say that the owner
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owns the stock and when the owner owns
the share of a particular come over here
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several companies on over here
particular company we say that the owner
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owns the share now the term the stock is
a generic term when an owner owns the
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stock we cannot specify them as shares
of a particular come but this over here
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it's specific it's related to one come
it's a specific term and when the owner
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owns a share we can ask about a
particular comfort in case of stock we
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cannot ask about the particular company
let's take an example stock mr. e
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invests into in in stocks and this
deepen does not require any further
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questioning he owns the stock that's it
but over here mr. B has invested in
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shares so we asked them the next
question in which company how many
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shares what type of shares over here we
we asked the relevant information this
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is a generic term no stock can be
compared to the automobile industry
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macro and micro that's why and shares
can be compared to the car particular
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company so over here we are talking
about a box and this is the pieces in
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the box industry and this is a
particular company right so this was the
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difference between the shareholder and
the stock holder now let's understand
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the difference the key difference is the
shareholder was as the stock holder the
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key differences see the first the stock
is a generic term so when we mentioned
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stop we see it like this the investor
invests in stocks share on the other
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hand in it's quite specific and when we
mentioned share we say that it's like
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mister you you've bought something about
shares of a shop its second the stock is
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a macro concept and the share is a micro
concept now when we say a stock we
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cannot specify on a particular company
like for example if we understand the
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difference between the automobile and
the car so this is like the industry
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part and this is the company third so
forth to to a layman who does not go
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into inter sees you know we will
understand stock and shares as the same
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thing because there is no much
difference you see the stock is more of
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a generic in term right does you know it
cannot be used when we talk about types
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however you know in this case of shares
we can have two types of shares the
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equity shares and we have the preferred
shares and in the case of the shares we
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also can we we also can how they are
issued now the shares can also be issued
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in three ways par the premium and the
discount so now let's get down to the
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conclusion after discussion of all this
particular thing let's understand let's
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wrap it up
in simple terms there is a slight
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difference between the stock and the
share and to most of the investor does
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not make a huge however you know when it
comes down to understanding both the
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stock and share understanding share is
important then stock understanding the
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share will help you understand the
meaning of the power value so the face
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value of the share and also what issued
at premium and what is issued at this
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plus you will be able to understand the
nitty-gritty of the scene so well stock
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is all about understanding and investors
group of investor that has been into the
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stock investment so that's it for this
particular topic if you have learned and
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enjoyed watching this video please like
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thank you everyone Cheers
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