What is a share?
When you buy a share in a company, you’re effectively becoming a part owner of that company. As a shareholder, with an equity stake in that business, the investment return you earn depends on the success or failure of the company itself. Companies may pay dividends to shareholders or may prefer to reinvest profits for further growth.
Benefits of investing in shares
- Part-ownership of a company
- Real-time dealing throughout the trading day with limit orders available when markets are closed
- Receive dividends either as income or re-invest to buy more shares
- Ability to vote on important company decisions