Friday 21 August 2015

WHAT ARE SHARES?

Some of you will know this already but some wont.

Generally speaking the most basic example I can give is that shares are  representation of your holding in a publicly listed and traded company. For example if you have 10000 shares in a company that issues 1,000,000 shares you control 1% of that company and are entitled to 1% of the profit distribution.

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 - Basically on your phone or computer.  This opens up the market like never before to the average person.

NEXT ARTICLES:

Why Shares?
Why do shares move up and down in value?





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