Stocks and Shares

Definition ∞ Stocks and shares represent ownership equity in a company, granting the holder a claim on its assets and earnings. These traditional financial instruments are traded on regulated exchanges and form the bedrock of conventional investment portfolios. While distinct from digital assets, the principles of equity ownership and market trading provide conceptual parallels for understanding tokenized securities. They represent fractional ownership of a corporation.
Context ∞ Discussions often compare the regulatory frameworks and market dynamics of traditional stocks and shares with those of digital assets, particularly tokenized securities. The established legal and operational structures for stocks serve as a benchmark for developing compliant digital asset markets. News frequently contrasts the liquidity, volatility, and investor protections present in both asset classes.