The terms stock market and share market are often used interchangeably. However, there are a few subtle differences between the terms that every investor needs to be aware of. Shares, in general, signify a particular company while a stock is much more broad-based and it can also involve the shares. Thus, it can be said that while the former is more specific, the latter is more extensive.  

For example, if you own the shares of ‘XYZ Industries,’ you cannot say that you own the stocks of that industry. But, if you own the shares of a couple of other companies along with XYZ Industries, it can be categorized as stocks that you own. 

The basic differences between stocks and share market 

The stock market: 

A stock market is basically a market that deals with the selling and buying of all kinds of stocks or securities. A stock is essentially a set of shares that have been brought together as a group. One set of completely paid shares make up a stock. If you are with a firm that deals with full-time or discount brokerages, they will help you understand it better. 

A stock is never expressed in numerical terms but rather always expressed in terms of monetary values. You can split it into any portion of any amount. But there is a crucial point to be kept in mind that regardless of any factor, there can always be a set of partly paid-up shares that combine to make a stock. A stock must always be fully paid by you. 

The share market: 

On the other hand, the share market, as opposed to stock market deals solely with the transactions relating to shares. The shares can be partly paid or fully paid up. In the case of shares, this particular criterion does not really matter. A share is basically the interest of the holder of the share in the company that he has invested in. The rights and obligations are given to the investor in this case.  

It can even have the cause of liability, which means that the investment which an individual makes on a company’s shares are basically a type of liability for that company. The idea of liability and the Sensex are some of the things you must know when looking for how to invest in the stock market. 

Terminological differences between stocks and shares 

As per Espresso Trading & Investment, there are some crucial differences between the terminologies as well. For instance, a share can be issued directly but a stock is never issued directly. It comes either as the shares or a stock always. Besides, shares come with a nominal value but a stock never has a nominal value. Shares are usually split into equal amounts by the investors but that is not something they would do with the stocks. 

The endnote 

It is crucial for the investor to understand and know the different terms of shares and stock market so that can make the right decision regarding subscribing to securities. Any beginner venturing into the securities market is a layman and without knowing the differences, it can be very difficult for him to take a profitable step.