Stock, share, security, equity?

Question

I have a general idea of how you purchase stock and acquire a share of a corp but I feel that I don't really understand the difference between stocks and shares. I have already looked up the definition on wikipedia but dont really understand it. can someone explain it as you were teaching a child. I also dont understand aquity and securities. There seems to be so many definitions for each term that I am very confused. And then there is also equity security??? What in the world is it? Thank you.

Answer 1

There is no difference between stock and share.

Securities are all financial instruments used for investment purposes. Stocks are one type of security, bonds are another kind. Stocks are also called equity security and bonds are also called debt security.

Answer 2

there is no difference between stock and share if you live in two different countries.  In the USA we buy Company X stock.  How much stock do we own?  Tom has 1,000 shares of Company X stock, d**k has 500 shares and Harry has 200 shares (kind of like Tom, d**k & Harry all have money but Tom as $10, d**k has $5 and Harry has $2).  In India (and I don't know where else) they buy Company X share.  

Jane's portfolio is made up of 65% Equity type of security (stock {shares if she is in India}) and 30% Bonds or Debt type security and 5% cash type of security (money market, checking account or saving account in a bank/credit union, CD's).

Answer 3

A stock is a share... equity means stocks and shares where you get some part of the company for putting money in it.

As for securities, it's a more general term and can mean stocks, shares, debentures, etc. Cheers! :)