What is Stock and What is Share?

 

Stock vs Share: What’s the Difference?

If you’ve just started learning about the stock market, you’ve probably heard the words stock and share used a lot.
Many beginners think they mean the same thing — but while they’re related, there’s a small difference.

In this article, we’ll break it down with simple language, real-life examples, and a quick comparison table.

What is a Stock?

A stock represents ownership in a company.
When you buy stock, you’re essentially buying a tiny piece of that company.

Example:
Imagine a cake 🍰 that represents a company. The whole cake is the stock.

If you own stock in Infosys, it means you’re part-owner of that company. If Infosys grows and earns more profit, the value of your stock usually increases.

What is a Share?

A share is one single unit of stock.
Companies divide their stock into small parts called shares so people can buy and sell them easily.

Example:
If the cake 🍰 (stock) is cut into 1,000 slices, each slice is a share. Owning more shares means you own a bigger piece of the company.

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