Here is an explanation of some differences in the use of the words 'stock' and 'share' across the centuries and currently in Britain and in the USA, When the first English 'joint stock companies' were formed in the 16th century, stock meant the owners' capital in the company -- what we now call equity. This stock was divided into parts or shares.
In the 19th century, American certificates for shares of stock were at first called c=share certificates, but later came to be called stock certificates (even though 'shares' are often mentioned in the text of the certificates).
The British continued to call them share certificates, even though they trade them through stockbrokers in a stock exchange. 'Stock' in Britain now generally means loan capital -- loan stock, debenture stock, or government stock.
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The Scripophily Guide by Howard Shakespeare. Reprinted with permission from International Bond & Share Society
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