Shares Vs Stock

Shares

The capital of a joint stock company is usually divided into certain indivisible units of a fixed amount. These units are called Shares.

"Share" means a definite portion of the capital of a company. It includes stock also. A share is evidenced by a company under its common seal.

It specifies any shares held by a member and is
prima face evidence of the title of the member to the shares. The shares of any member in a company are a movable property. They are transferable in the manner provided by the articles of the company.

Stock

Stock is the aggregate of fully paid up shares, consolidated and divided, for the purpose of convenient holding into different parts.

It may be transferred or split up into fractions of any amount, without regard to the original face value of the shares. Stock can validly be issued only when the shares are fully paid up. This in other words, means that only fully paid up shares can be converted into stock.

Limited Company can convert all or any of its fully paid up into stock and reconvert the stock into fully paid up share, of any denomination by a resolution passed in the general meeting, if authorized by it article, when shares are converted, motive should be given to the Registrar within 30 Days.

Shares Vs Stock

S.no	Shares	Stock
1	A share has a nominal value	Stock has no nominal value
2	These may not be fully paid up	Stock is always fully paid up
3	Transferable in round numbers	Transferable in small fractions
4	Shares are of equal denomination	These are of unequal amounts
5	Shares always bear distinctive number	Fractions of stock do not bear any distinctive numbers
6	Directly issued to the public	Cannot be issued directly to public (one fully paid up can be converted)

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