Investing uncovered: What owning shares is all about

Julie Brownlee, Fsp Invest, 26 Mar. 2014

Tags: shares, owning shares, what is a share, investing, companies, selling shares, why buy shares,

When you think about investing, one of the first things that comes to mind is buying and selling shares. But have you given any thought to what a share is? And why do companies sell shares in their businesses? Let’s take a closer look at what shares are all about…

Why companies sell shares

Companies sell shares in their businesses to raise money, John Stepek in Money Week explains. Of course, they can do this by borrowing money from the bank and by other means, but selling shares has its advantages over these other methods.

One of the main advantages of selling shares is that the company has no obligation to repay that money back to the shareholder. The company also doesn’t have to pay interest as it would it if took out a loan.

So if you decide to buy shares, you take the chance that the company could go bust, rendering your shares useless.

How you can profit from the power of 12 of the world’s greatest investment strategists

If you want to be the best, you should learn from the best. Now you can use the investment strategies of the world’s greatest investors – multi-billionaires like Warren Buffett, Benjamin Graham and David Dreman.

All you need to do is click here to find out more now.

The advantages of owning shares

But of course, there are plusses to owning shares, otherwise nobody would buy them.

When you buy shares, you hope that the company you invest in is going to flourish over time. This means that’s you’ll benefit from a rising share price and possible dividend payments too.

What owning shares really means

By buying shares, you’re buying a small piece of a company. It really is as simple as that. You own a stake in that business.

For example, if you own Sasol shares, you own a bit of Sasol.

And the main driving factor behind owning shares is the hope that you’ll share in the company’s profits.

So there you have it, what owning shares is all about.

Related QA

kavesh.maharaj.73 asked:
Hi Josh Quantum wants to buy back shares from shall investors at what I think is a low price of around R3.86. You tipped the share in February [read more]
Published at 14 Mar. 2018 in: Investing Real wealth 5 answers
elizastrydom asked:
Hi Timon I am interested in registering for your Red Hot Storm Trader service. I am already a Red Hot Penny Shares investor. My question is [read more]
Published at 28 Feb. 2018 in: Investing Trading platform and broker 1 Answer
ManuE asked:
I have an interest in investing in Bitcoin, I just don't know how. If I buy Bitcoin with R15 000, how much can make (Return On Investment)? [read more]
Published at 25 Feb. 2018 in: Investing Investment 1 Answer
rickey101ter asked:
Good day gentlemen I am a subscriber of various of your products e.g. the above mentioned two and TWS, but I am not happy with the services I [read more]
Published at 07 Feb. 2018 in: Investing Investing 2 answers
bongani.zwane.127 asked:
Hi Francois, I want to invest in ETF for my kids educational funds. I would like to find out which ETF securities can I invest into for a period [read more]
Published at 01 Feb. 2018 in: Investing 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories
  • Accountancy