Question 1

What is the difference between a stock and a share?

Accepted Answer

Stock is the broad idea of ownership in a company. A share is one countable unit of that stock. If you own ten shares, you own ten of the units the company has been divided into.

Question 2

Does owning a share mean I control the company?

Accepted Answer

No. One share is a tiny slice of ownership. It can come with a vote on certain decisions, but a single small holder has almost no control. Control sits with whoever owns a large enough portion of the shares.

Question 3

Why do companies issue stock at all?

Accepted Answer

Issuing stock lets a company raise money by selling pieces of itself instead of only borrowing. The cash can fund growth, and in exchange the new owners share in the future of the business, for better or worse.

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