Some of you will know this already but some wont.
BASIC RUNDOWN
Ever wondered “What are shares?”. Generally speaking the most basic example I can give is that shares are representation of your holding or ownership in a publicly listed and traded company. For example, if you have 10000 shares in a company that issued 1,000,000 shares, you have a 1% holding in that company. With that you are entitled to 1% of the profit distribution (assuming of course the company pays distributions) while you own those shares. The word “stock” refers to the collective shares in the company (and even other companies) that you own. A Stock certificate might state that you own 10,000 shares in a particular company. A stock portfolio would refer to the collection of stocks you own in various companies.
As the holder of these shares you have the options of buying more if there are any available on the market to buy. You have the option to sell your holdings if someone in the market wants to buy them. You also have the option to just keep holding it and collecting any of the profit distributions (known as dividends) if you’d rather just do that.
NOW vs THEN
In the past shares were traded on an exchange floor (for example the New York Stock Exchange) and you would have to turn up there physically to buy or sell as a trader or pay a broker to buy or sell shares on your behalf. Now with computer technology almost anyone can buy and sell online with a very minimal cost. The Market is now a press of a phone button away and always available in your pocket. This opens up the market like never before to the average person.
Being a share holder could give you the right to vote on important matters that the company brings before the shareholders as well.
You have to find something that works for you. I believe the share market is the single greatest way to make money there is.
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