Difference Between Share and Stock As per Section 61, Companies Act, 2013, the company can convert its shares which are fully paid up, into stock. A Share is the smallest unit into which the company’s capital is divided, representing the ownership of the shareholders in the company. A ‘ Stock ‘ on the other hand is a collection of shares of a member that are fully paid up. When shares are transformed into stock, the shareholder becomes a stockholder, who possess same right with respect to the dividend, as a shareholder possess. All the shares are of equal denomination, whereas the denomination of stock differs. When one wants to invest in shares, he/she must be aware of the difference between shares and stock, along with the conditions, when shares are converted into stock. Meaning Share- The capital of a company, is divided into small units, which are commonly known as shares. Stock- The conversion of the fully paid up shares of a member into a single fund is known as ...