What is the difference between a stock and a share?

The main difference between a stock and a share is that stock is a broader concept to convey ownership in a company, while shares are the individual units of ownership. The words "stock" and "share" are often used interchangeably, but there are key differences between the two. Stocks are securities that represent ownership in a corporation.

What does it mean to own a share?

Owning a share means owning part of a business, with dividends and voting rights. Stocks may be publicly traded (like Microsoft) or privately held. Understanding IPOs helps grasp accessibility to ownership. Common vs. preferred stocks differ in dividends, voting rights, and claims priority. Fractional shares offer access to pricey stocks.

What does it mean to own a stock?

Most people realize that owning a stock means buying a percentage of ownership in the company, but many new investors have misconceptions about the benefits and responsibilities of being a shareholder. Many of these misconceptions stem from a lack of understanding of the amount of ownership that each stock represents.