I never really got my head around the difference between a “share” and a “stock” at L1. Any takers for this?
Typical usage is “N shares of stock”.
well you can have many shares of the same stock… and only one stock in your portoflio of that type… so like the above post: 50000 shares of BBY = you got 50000 shares but only one stock
There is really only one context (that I can think of) where it mght appear that the two are used interchangeably. You will see both the terms “Shareholders’ Equity” and “Stockholders’ Equity” on a balance sheet. Since you are talking about one specific company or stock, the shares in “shareholders’” is by default in the stock of the company whose financials you are looking at.
a share can be a stock and a stock can be a share. it would always be one but could change at the descretion of the board. for example… a bond may become a few shares… but a few stocks would never become a bond, and a few bonds would never become a few stocks.
i’m guilty of writing a non-sense post here and there, but that might win “the most confusing post of the year” award. for one… i dont know what bonds have to do with the original posters question. (fyi - they are called convertible bonds). and what are you talking about in regards to: they can change at the discretion of the board??? anyway… think of shares as a parameter (or unit of measurement) to describe how much of stock you are talking about. 15 shares of stock. 15 inches of string. stock is the entity itself shares describes how much
mikeeboy Wrote: ------------------------------------------------------- > a share can be a stock and a stock can be a share. > it would always be one but could change at the > descretion of the board. for example… a bond > may become a few shares… but a few stocks would > never become a bond, and a few bonds would never > become a few stocks. Say what?
mikeeboy Wrote: ------------------------------------------------------- > a share can be a stock and a stock can be a share. Agree. > it would always be one but could change at the > descretion of the board. In the case of a split, I guess 1 stock that used to equal 1 share would change. > for example… a bond may become a few shares… Now you’re talking about convertibles? >but a few stocks would never become a bond Some would argue that preferred stocks have characteristics closer to bonds. >and a few bonds would never become a few stocks. If we’re talking about convertibles, don’t see why not. Is this a riddle? Is this a riddle?
That’s it - it’s a riddle. Hard one though.
Preferred’s place in line: Beneath your convertible’s, Unless turned to shares.
they say a riddle can be solved in a few but we only have a defined number of them and if we use them all up there is no time for FSA
Did nobody else spot the 17 syllable Haiku from Darien? Good effort! I wasn’t actually bothered about the linguistics of it. I read something in the Schweser notes that said some companies are “Growth Stocks” while others, with different characteristics, are “Growth Shares”. Did I dream that bit or can anybody expand?
I would use those two terms interchangeably. Sorry you are having such dreams. Klonopin would help.
Are you sure you didn’t read “Growth Stock” vs. “Growth Company”?
^ That’s a good bet.