Stocks, also known as equities, are normally issued by a company as a fundraising tool. In other words, companies raise capital to fund their business – e.g. to raise money to allow the company to launch new products, expand or buy equipment – by selling shares of stock. When you purchase shares of stock in a company, you buy an ownership interest in that company, in the hope of getting a return on your investment.
Stock | Share |
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Represents ‘ownership’ in a publicly traded corporation or business. | Is a unit of measurement of your ownership interest in a company. |
Does not tell you how much you own. | Tells you the exact amount you own. |
Is not specific. | Represents a specific piece of ownership interest in a particular company’s stock. |