Business

Finance 101: What are Shares? A guide for beginners

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Shares

Shares represent ownership in a company. Buying shares makes you a partial owner.
 

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Types of shares

Common Shares usually offer voting rights and dividends. Preferred Shares often have fixed dividends and priority in liquidation but no voting rights.
 

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Stock exchanges

Shares are bought and sold on stock exchanges. Their price varies based on market conditions.
 

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Dividends

Dividends are payments from a company’s profits to shareholders. Not all companies pay them.
 

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Stock market

The stock market is where shares are traded. Companies list shares to raise money.
 

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Returns

Shares can offer returns through price increases and dividends but come with risks.
 

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Benefit

One major benefit of investing is the potential for significant financial growth through capital appreciation and income generation, which can help build wealth over time.
 

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How to get started?

Open a brokerage account, fund it, and start buying shares. Research companies and diversify investments.

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