The Bottom Line

Shares and stocks are terms that are often used interchangeably to refer to the equity instruments that represent ownership in a corporation or similar entity. However, there are some subtle differences between them depending on the context, geography and culture (e.g., "shares" is used colloquially in the UK while "stocks" is far more common in the US). Shares is a more specific term that can refer to the ownership of a particular company or a type of financial instrument, while stocks is a more generic term that can refer to a slice of ownership of one or more companies or a collection of investor holdings or a portfolio. The words also have some other meanings that are related to their original senses of division and trunk. Shares and stocks are both important concepts for investors who want to participate in the equity market and benefit from its potential returns and risks.