Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Difference between stock and share

sandeepverma (don't make exuse for study) (304 Points)

20 October 2011

difference between stock and share ???

Reply
Follow
Share

6 Replies

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 20 October 2011

Distinction between share and share stock is as follows: Share Stock

 A share may either be fully paid up or partly paid up.

 Shares can be issued originally.

 A share has a nominal value.

 A share has a definite number which distinguishes it from other shares.

 A share can be transferred only in its entirety or in its multiples only.

 Shares can be issued by any company-public or private.

 Stock can never be partly paid – up.

 A company cannot make an original issue of stock.

 A shock has no nominal value.

 A shock has no such number.

 Stock may be transferred in any fractions.

 Stock is applicable only by public company limited by shares.

4 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Rahul (Chartered Accountnat CS) (1580 Points)
Replied 20 October 2011

Well said by rajesh .

Entire capital of the company is divided into small units, each unit is a share.

And when the company converts a bunch of these shares into 1 big fund, it becomes stock.

-A share in a company is one of the units into which the capital is divided. On the other hand, a stock is an aggregate of fully paid shares of a member merged into one fund of equal value.

This fund can be divided into fractions of any amount and can be transferred.

Only a company limited by shares may, if authorised by authorised by Articles by resolution passed in general meeting, convert all or any of its fully paid up shares into stock.

Shares are issued originally by the co. However a co cannot make an original issue of stock. Only fully paid shares can be converted into stock

6 Like

shwetha (CWA learner) (447 Points)
Replied 20 October 2011

wonderful explanation by Rahul and Rajesh

1 Like

Swapnil Jain (Finance - FP&A) (564 Points)
Replied 20 October 2011

Originally posted by : RAJESH CHOUDHARY
	Distinction between share and share stock is as follows: Share Stock  A share may either be fully paid up or partly paid up.  Shares can be issued originally.  A share has a nominal value.  A share has a definite number which distinguishes it from other shares.  A share can be transferred only in its entirety or in its multiples only.  Shares can be issued by any company-public or private.  Stock can never be partly paid – up.  A company cannot make an original issue of stock.  A shock has no nominal value.  A shock has no such number.  Stock may be transferred in any fractions.  Stock is applicable only by public company limited by shares.