Buying a share means ownership.
A stock share represents an ownership interest in a company. Depending on the share type, shareholders may have voting rights and may receive dividends if the company pays them. Dividends are not guaranteed. Investor.gov’s stock introduction.
Here, “buying shares” means fully paid shares in a cash account. Borrowing on margin or selling stock short adds other requirements and risks.
A stock perp is a different contract.
A stock perp is linked to a stock’s price without giving you the shares. Vest describes its stock markets as price exposure without holding the underlying. Do not assume that a familiar stock symbol gives you shareholder rights. Vest’s market descriptions.
A contractual dividend or corporate-action adjustment, if a venue provides one, is not the same as owning the company. Read the contract rather than assume dividends, voting rights, or split treatment work like a brokerage shareholding.
A simple ownership check.
Imagine a fictional company called Northstar. Buying its shares means holding a stake in Northstar. Taking a long Northstar-linked perp means holding a contract whose result depends on its price and terms. A similar price movement can appear on both screens while the legal and economic position is different.
That distinction matters even if you never plan to vote or collect dividends. It changes the questions you need to ask about the provider, collateral, pricing, and what happens if the position is closed.
Holding the position is different too.
Perpetual funding can be paid or received while a position is open. It is separate from trading fees. Fully paid cash shares do not have the perp’s funding mechanism, although broker, spread, currency, or account charges may still apply. Read about funding.
“No expiry” also does not mean “always available to trade.” A stock perp can have closed periods. During a lock, you may be unable to adjust or exit the position even though you still hold its risk. Check the provider’s schedule.
Before you confuse the two, ask:
- Am I buying a share or entering a derivative contract?
- What rights do I actually receive?
- Can funding or other costs accrue while I hold it?
- Which hours, collateral rules, and closure conditions apply?
If these answers are unclear, understanding the product is a better next step than choosing the largest available leverage. See all four products side by side.