Shares in basic terms help companies to raise money through exchange of shares it holds . Companies in order to raise funds issues shares to investors in public domain . Whether you term it stocks , shares or equity there isn’t much difference however the difference lies in the context in which it has been spoken .Owning a share is like holding a portion of the company. Suppose PC Jewelers issued 100 shares in total & you bought 10 shares than you own 10% of the company . These shares are then traded in the share market.