While often used interchangeably, "shares" and "stocks" have subtle differences in the financial world. Here's a breakdown:
1. Shares: Units of Ownership
A share represents a specific unit of ownership in a company.
Think of it as a single slice of a company's total ownership pie.
For instance, if a company has 10,000 shares outstanding, and you own 100 shares, you own 1% of the company.