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Difference Between Share and Stock As per Section 61

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 stock.
Is it possible for a company to make original issue?
Share-Yes
Stock- No
Paid up value
Shares can be partly or fully paid up.
Stock can only be fully paid up.
Definite number
A share have a definite number known as distinctive number.
A stock does not have such number.
Fractional transfer
Share- Not possible.
Stock- Possible
Nominal value
Share- Yes
Stock- No
Denomination
Share- Equal amounts
Stock- Unequal amounts

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