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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till the end also if you are new to this channel then you can subscribe us by
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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 and comment on this video and subscribe
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to our channel for the latest updates thank you everyone Cheers