There are a number of different shares you can buy, including preference shares, bonds, and gilts but the most popular type is the ordinary share. Ordinary shares simply represent ownership of a company.
So, when you buy shares, also known as equities or stocks, you literally become a part-owner of that business.
Companies do not have to list on the stock market to issue shares. Many businesses start life with friends and family as shareholders. These businesses are called unlisted firms and their shares are often referred to as ‘unquoted’.
Once a company decides to raise money from the general public it is called a Public Limited Company (Plc) and is a ‘listed firm’. Its shares are then referred to as ‘quoted’ or ‘listed’ on the stock market.
As a shareholder you have a say in the company’s affairs by voting at company meetings and, of course, the ability to share in its fortunes. If the company does well, the value of your investment should rise but if it does badly, you could see your shares fall in value.
2 comments:
Furkan my question to you....
Whats the advice for people who are stepping into the rather dicey world of capital investments?
Aritra you just need to keep reading my posts on this site.Will be posting articles which will clarify the basics of share investment.Later on will post stock specific ideas with proper reasons for investing into a specific stock.
Post a Comment