Shares, also known as equities or stocks, represent ownership in a company. When you buy shares in a company, you become a shareholder and are entitled to a portion of the company’s profits and assets. The value of a share is determined by the company’s performance and the overall state of the stock market.
Shares can be bought and sold on a stock exchange, and the price of a share is determined by supply and demand. When more people want to buy a particular stock than sell it, the price goes up. Conversely, when more people want to sell a stock than buy it, the price goes down.
Owning shares in a company can be a way to participate in the company’s growth and potentially earn a return on your investment. However, it’s important to note that investing in shares carries some level of risk, as the value of the shares can go up or down depending on the company’s performance and the overall state of the market.
Each month we’ll aim to bring a bit of humanity and common sense back into the world of finance.