A4. Why Invest in Shares

What is a Share

Shares, also known as stocks or equities, are the unit of investment in individual companies. A share is simply a divided-up unit of the value of a company. If a company is worth $100 million, and there are 50 million shares in issue, then each share is worth $2. As the overall value of the company fluctuates so does the share price.

Check out this great video from Joyful Investor about what a share is.

 

Reasons to invest in shares

  1. Outperform other investments: over time shares have tended to outperform government bonds, corporate bonds, property and many other types of assets

About Andrew Kwabena

The Editor of MoneyInAfrica

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