I believe that many people often hear two financial terms, one is stocks and the other is securities.
The difference between stocks and securities: stocks refer to certificates issued by a company limited by shares to prove the shares held by shareholders; securities refer to legal certificates of various economic rights and interests, including capital securities, currency securities and commodity securities. Securities include stocks, stocks are a type of securities, and securities are not necessarily stocks.
Let’s elaborate on the difference between stocks and securities:
A stock is a kind of negotiable securities, which refers to the share certificate held by a company limited by shares.
Securities refers to the collective name of a variety of economic rights certificates, and also refers to special types of products.
Second, the specific content included, the classification is different
1. Stocks mainly refer to the share certificates of listed companies. There are many classifications, but they only refer to shares.
Classification of stocks: According to the rights enjoyed by shareholders, they can be divided into common stocks and preferred stocks; according to whether the name of the holder is marked on the par, it is divided into registered stocks and bearer stocks; Par value shares and shares without par value; according to whether they can redeem their property from the joint-stock company, they are divided into redeemable shares and non-redeemable shares.
2. Securities mainly refer to legal certificates that can prove that securities holders enjoy specific rights and interests, mainly including capital securities, currency securities and commodity securities.
A certificate of certain rights and interests enjoyed by the holder of a security note, such as stocks, bonds, promissory notes, bills of exchange, checks, insurance policies, certificates of deposit, debit notes, bills of lading, etc. are marketable securities.
3. The relationship between the two
Stocks are a type of securities. Stocks cannot represent securities. There are many types of securities, and they are very extensive. That is to say, securities are not necessarily stocks.