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Investing in shares
What are shares?
When you buy shares you are buying a part of the company. Shares are the certificates of the ownership.
You can receive part of the company's profits in form of dividends, and you can also profit from
the capital growth of the stock price.
But there are also risks of the business and the market.
Why to invest in shares?
- stock market has offered better long-term returns than most other investments like bonds, cash deposits etc.
- You can usually sell the shares and access your money the next business day, contrary to the real estate for example.
- You do not need much money to start investing in shares, in my opinion you can start with $5,000 (there are brokers that open accounts with as little as $500).
What do you need?
- brokerage account
- some knowledge about investing, stock analysis etc.
- winning strategy for investing or trading.
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