SHARETIPSINFO >> Articles Directory >>Major differences between stock and share market


As the world is changing day by day the concept of economy is also changing. New theories and concepts are coming into the forefront. Economists are finding and trying to bring out new definitions for the term economy itself, as the entire concept is not what it used to be in the earlier days. Back in the earlier years economy was small concept revolving around you small place or area. But now the entire theory and concept of economy has evolved and even enlarged. Economy now, in general refers to the world economy. Globalization has made this possible. Now a day, whatever happens in a small area can have a director indirect effect on the entire world economy. The markets have become more and more global. Every sector is influenced by the other, if one sector is hit there is plenty of chance that the other sectors even which are remotely related to the hit sector will be affected big or small time. Such a reaction cannot be avoided in the present world market. But what exactly is a market? Well, the answer is that a market is basically a place well the buying and selling of goods and services take place within a period of time. A market could deal with any item under the sun. Be it grocery goods, factory goods like machines, raw materials and so on and even services. The market where securities are brought and sold and are dealt with is known as the share market. This type of market deals with the transactions relating to the buying and selling of shares. Both the concepts and markets are same in some ways but also different in same ways. In reality there can actually be major differences between stock and share market. For that our concepts on both stock market and share market should be clear.

About the stock market
A stock market is essentially a market, which deals with the buying and selling of any kind of stocks or securities. So, what exactly is a stock? Well, a stock is simply a set of shares, which have been put together in a group. A set of fully paid up shares make a stock. You need to know about online stock trading too. A stock is of course, always expressed in terms of money but never are they mentioned in numbers. A stock can be split up into any fractions of any amount. But one thing must be kept in mind that no matter what there can be a set of partly paid up shares, which could make a stock. A stock always has to be fully paid up. The share market on the other hand deals with the transactions relating solely to shares. Now, shares can be fully paid up or partly paid. It goes without saying that; this particular criterion does not really matter in case of shares. A share is actually the interest of a holder of a share in the company where he has invested. A share gives certain rights and obligations to the investor. A share can even have the purpose of liability i.e. the investment that a person makes on the shares of a company is actually a kind of liability for the company. You should try to know about reading the sensex.

Understanding the different terms
It is very important for an investor to know and understand the different terms of the securities market so that he can make the right decision about securities to subscribe to. An investor is in general a layman to when he tries to invest in the securities market. But it is still very vital for him to at least understand a bit about all the securities and all know the differences between the various terms like it is very vital that he know about the differences between the various types of market. There are few differences between a share and a stock like while a share can be issued directly, a stock on the other hand can never be issued directly. It always comes as a stock or shares etc. Also, it must be said that shares have nominal value while; a stock can never have a nominal value. Shares, as we know are always split into equal amount but such is not the case with a stock. These are therefore, some of the major differences between stock and share market.


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