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 either have to be 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 - 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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