Share, Stock, Equity – the meaning of terms for an investor
Today’s post is complementary. Let’s talk about Share, Stock, Equity.
These three concepts are often confused. Used incorrectly. As a result, there is confusion in the head. And in the perception of analytics, too, mess. Therefore, we will understand once to make it easier.
Share in investments is a share. You may have an interest in a mutual fund, a partnership, a real estate fund, or some other fund.
You can also have a share in a company (corporation). In this case, you are a shareholder or stockholder. What does the same mean
In other words, Share is a part of the company’s capital. But besides this, there is also a relationship with the company, a relationship with the company, a link, what connects you, as the owner of a share (share) with the company
So share is a share. One share is also Share
WHAT IS EQUITY
Equity in investments is the amount of money that the company’s shareholders will receive if all the company’s assets are sold and all debts are distributed. Those. this is shareholder equity. Those. Equity can express the value of the business if all obligations are paid off.
The basic definition of Equity is ownership.
In a broader sense, Equity can mean the amount (share) of a company owned by another company or any person.
On the screen Balance sheet of Microsoft. The arrow showed the current Shareholder equity value. Please note that Shareholder equity and Stockholders Equity are the same thing.
It can also be concluded that Equity is share capital. Thus, if you and a friend chipped in 5 million each to open a company, then the 10 million that formed after that is also Equity
WHAT IS STOCK
Stock in investments is the total number of shares. Usually, capital stock. We can also talk about one share of stock. This is a separate stock, a unit from the stock.
Thus, the term Stock can be used to describe exactly a “share" in a company. Those. we can say that you own three thousand shares of stock (stock shares). But you can also say that those shares (those shares, shares) are traded at $115.
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