Get Started in Shares

Stocks and shares

There is some lack of clarity on the distinction between stocks and shares. Shares are equities in companies, i.e. an ownership share of the business representing an equal stake in the business. This is the ‘risk capital’ as described above. Stocks are financial instruments that pay interest, e.g. bonds. However, in the USA shares are also called common stocks and the shareholders are often referred to as stockholders. So when some people use the term stocks they could be referring to either bonds or shares.

Being British I’ll try to hold back the tide of Americanisms (Canute-like, I hear you saying) and stick with calling shares shares – despite the fact that an increasing proportion of Financial Times writers are calling them ...