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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.


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 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



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.


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