Difference Between Equity And Stock

In fact, there is no difference between Equity and Stock because these are the same terms used in two different Accounting Systems. The word ”Equity” is used in British Accounting System while “Stock or Capital Stock” is used in American Accounting System.

Equity is the rights of the owners of the business who invested into the business of a company, especially in the form of shares in order to start or grow it while the Stock or Capital Stock or Stock Equity is the traded or exchanged stock invested in the business of a corporation transacted by the stockholders of a corporation. Examples are shares investments that are traded and exchanged in Stock Exchanges by stockholders of the corporation.