Skip to main content

Difference between Stock & Equities


Stock and equity both represent the ownership in an entity(company) and are traded on the stock exchanges.There is a very thin line of difference between Stock vs Equities.

 Stock

A stock is a general term used to describe the ownership certificate of any company. A share , on the other hand refers to the stock certificate of a particular company. Holding a particular company’s share makes you a shareholder.

 Equity

Equity means the value of a business after all the liabilities are paid off. It represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s dept was paid off.

  

Stock vs Equities

Stock

Equities

1. Stocks are those equities shares which can be bought and sold on stock exchanges.

1. Equities cannot be bought and sold on stock exchange.

2. Stock involve  general public participation.

2. Equities  does not involve general public participation.

3. Stock price fluctuate on a daily basis based on demand and supply of the stock.

3. Equity price does not fluctuate as they cannot be bought and sold in stock exchanges hence does not attract ant demand or supply.

4. Number of stock multiplied by Price of stock gives the market valuation of the company.

4. Number of equity multiplied by the face of the value of equity gives book value of the company.

5. Value of stocks is not mentioned in the balance sheet of a company.

5. Value of equity is mentioned in the Balance Sheet of the company.

6. Value of Stock considered while Acquisition or Merger and Amalgamation to determine the valuation of a company.

6. Value of equity is not considered while Acquisition or Merger and Amalgamation to determine the valuation of a company.

7. For equity share to be termed as stock , equity needs to be listed on at least one of the stock exchange compulsory.

7. Equity need not be necessarily listed on stock exchanges.


Comments

Popular posts from this blog

Money Rules Everything, How to Rule It ?

Money: Paisa
Money is a medium of Exchange for goods and services. It is the way we get the things we need and desire. It has a value which has been assigned to it which is accepted by all. Since everyone cannot produce all the goods and services they need, money helps them to exchange these goods and services for a price.

Currency:  Type of Money
Currency is the accepted form of Money which may include coins and notes which is issued by a government and circulated within an economy. Generally speaking, each country has its own currency.
Examples of Currency:
India: Rupees America: US Dollars $ Europe: Euro UK: GBP UAE: Dirhams Japan: YEN Switzerland: Swiss Francs
Bottom-line, we all Want Money and to have it we have to work for it within the laws of the country.

What do we do with Money: Satisfy Needs
Money is the medium through which we satisfy our daily needs of purchasing the things we require for our existence and growth. We buy food, rent or buy a house, buy the clothes we wear. Money take…