What is the difference between stocks and equities?

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Solution

Stocks and equity are used interchangeably, they both constitute ownership in a company and are traded in the stock market. Stocks are pertinent to the stock equities traded in the market, while equity is the ownership of a company after paying off debts at liquidation.

Also read:

Debt to Equity Ratio

What Is Equity?

What Are Equity Shares?

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