# Share and Stock — Definition (Section 2(84))
Chapter IV of the Companies Act, 2013 (Sections 43 to 72) along with the Companies (Share Capital and Debentures) Rules, 2014, governs share capital and debentures.
## What is a Share?
Section 2(84) defines a 'share' as:
> a share in the share capital of a company and includes stock.
### Conceptual Explanation
- The capital of a company is termed share capital.
- Share capital is divided into units, each having a certain face value (nominal value).
- Each such unit is called a share.
- 'Stock' is included within the definition — it represents the consolidated holding of fully paid-up shares which a member can hold in fractional amounts (subject to AoA permitting conversion).
## Share as a Bundle of Rights
A share is not merely a unit of capital — it represents a bundle of rights and obligations between the shareholder and the company, including:
- Right to receive dividends (subject to terms of issue);
- Right to vote (depending on class);
- Right to participate in surplus on winding up;
- Right to receive notices and attend meetings;
- Obligation to pay calls (in case of partly paid shares).
## Key Distinction: Share vs. Stock
| Feature | Share | Stock |
|---|---|---|
| Issue | Originally issued | Converted from fully paid-up shares |
| Denomination | Definite (e.g., ₹10) | Indefinite / fractional |
| Transfer | In whole numbers | In fractional values |
| Distinctive numbers | Required | Not required |
Note: The Companies Act, 2013 no longer permits a company to convert its shares into stock (the corresponding provision under the 1956 Act has been omitted).