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Introduction
Understanding Stocks and Shares
Both stocks and shares represent ownership in a company, but they are often used interchangeably, which can cause confusion. Stocks refer to the ownership certificates of any company, while shares represent a unit of ownership in a particular company.
Stocks Definition
What Are Stocks?
Stocks refer to the overall ownership in one or more companies. When you own stocks, you own a fraction of the corporation's assets and earnings. Owning stocks means you have equity in the company, contributing to your stake in its overall performance.
Shares Definition
What Are Shares?
Shares are a specific unit of stock. When you purchase shares, you are buying individual units of stock in a company. The term "shares" is used when referring to the number of units you own in a single company, helping to quantify your ownership.
Stocks vs. Shares
How Stocks and Shares Differ
While stocks are
