{"id":3726,"date":"2021-01-11T08:00:26","date_gmt":"2021-01-11T06:00:26","guid":{"rendered":"http:\/\/contattoblogs.timslatter.co.za\/?p=3688"},"modified":"2021-01-11T08:00:26","modified_gmt":"2021-01-11T06:00:26","slug":"stocks-vs-shares","status":"publish","type":"post","link":"https:\/\/contattolive.co.za\/north\/stocks-vs-shares\/","title":{"rendered":"Stocks vs Shares"},"content":{"rendered":"

In the world of investing there are myriad ways to create wealth. These systems are complex, integrated and offer just enough certainty to attract our attention, but not enough to be a sure-thing.<\/span><\/p>\n

Two investable options that are talked about daily are stocks and shares. They sound and look very similar, but are in separate categories of investing and offer slightly different opportunities and have disparate risk exposure.<\/span><\/p>\n

In this blog, things may get confusing, so if you need a conversation about what\u2019s going on, just ask!<\/span><\/p>\n

Here\u2019s a quick overview:<\/b><\/p>\n

Whilst both stocks and shares offer opportunities for ownership or profit earning in a company, they represent different denominations of value. Stocks are sold to investors in order to generate capital when a company needs to raise money, and these stocks are broken into shares. We can loosely think of shares as equal fractions of ownership in a company. Stocks can include shares from multiple companies (spreading risk) whereas shares exist inside one company.<\/span><\/p>\n

Shares are normally issued at the startup of a company and divided amongst the directors, but can be offered in packages to new staff to attract them to the benefit of staying and building the company.<\/span><\/p>\n

According to educba.com, they set the differences out like this:<\/span><\/p>\n