If the founders of a bank have sold $100,000 worth of shares of stock, some to themselves and some to other people, the balance sheet will read assets (Cash) = $100,000 and Liabilities and Net worth (stock shares) = $100,000.
A stock is a colloquial phrase for any company's ownership certificates. On the other hand, a share alludes to a certain company's stock certificate. You become a shareholder if you possess shares of a specific corporation.
There are two sorts of stocks: ordinary and preferred. The distinction is that whereas the owner of the former can exercise voting rights in company decisions, the latter does not. However, before any dividends are paid to other shareholders, preferred shareholders have a legal right to a specific amount of dividend payments.
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