You may have heard a lot over the years about share trading, and perhaps even heard a story or two about people who have made a significant amount of money through the stock market. While share trading is hard work, and not to be entered into without doing your preparation, it can be lucrative for those with the right skills and qualities.
Before you take the plunge, it’s a good idea to understand the basics, or to refresh your understanding with this brief beginners guide to shares.
What is a share?
A share is effectively a piece of a company. When you buy a share, you are buying a part of that company, and that share has a monetary value. As a shareholder you also become entitled to a say in how the company is run, through voting at their Annual General Meeting, and you may from time to time receive a payment from the company called a dividend, which is paid out to all shareholders as a form of profit sharing.