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