How to buy stocks and shares
Most of us have heard of stocks and shares but don’t know how to buy shares or how to buy stocks. We explain the process of investing in shares and stocks in this guide.
Continue reading to learn more about shares, why investing might work out, and why it might not, and how to get your head around the taxes surrounding shares.
What are shares?
Also known as equities, a share represents a share of ownership in a company, and these shares are listed on a stock exchange. When you find a share to buy, you are buying a small stake in a company. You become a joint-owner of the company along with all the other shareholders, and you are invited to have a say in a number of the decisions the company makes.
When looking to buy shares, the aim is for the shares to grow in value over time; and also to benefit from a share in the profits of the company in the form of regular dividend payments. Shares give investors the opportunity for a steady income and capital growth, although neither of these is guaranteed.
Why invest in stocks and shares?
Historically, over the longer term, which is considered to be at least ten years, shares have generally been a better performing asset than many other forms of investment, such as cash and bonds.
