How Fractional Shares & Stock Split Works?! Everything You Need to Know!
By Miguel Dos Anjos What Are Stocks and Shares? Shares and stocks are a small part of a company. Once you own a single share or stock you own a small piece of that company. One share or stock will give you a very small portion of a company but you are still an owner of that company. Stocks and shares are often referred to as the same thing. But they are not always the same thing. Stocks, exclusively refer to corporate equities, securities traded on a stock exchange. Shares describe a slice of ownership in a company. It has a more specific meaning to it. We can only trade, (meaning buy or sale) public companies on the stock exchange but private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering. What Is a Stock Split? As a company grows and people keep on buying their stocks, with the higher demand the share price grows. And at some point each share becomes so expen