Shares - Let's take a closer look
Shares - you know what they are, so let's see why people buy shares. It might sound trite, particularly when the stock market is crashing around people's ears, but over the long term shares are a good investment.
The figures are there to prove it. Pension funds might be looking for alternatives to shares such as government bonds and property, but even they know that it would be stupid to ignore the stock market completely given its past record of outperforming other forms of investment.
There are also two distinct markets for shares. The primary market, which is created when shares are first issued.
And there is something called the secondary market, when already existing shares are bought and sold. The biggest share market by far is the latter.
It is also important to understand what fundamental part risk plays in the valuation of shares.
And why it may be safer and more profitable buying shares in larger companies rather than shares in small companies, which tend to be untested and very risky.
You'll agree there is a lot more to shares and share trading than first meets the eye and that is why it is important to take a closer look.
In this section:
- Why buy shares?
- Shares – the primary market
- Shares – the secondary market
- About risk About shares in small companies
- About shares in shares in big companies
- Resources