Shares
Owning part of a company — valuation, dividends and long-term compounding.
A share represents part-ownership of a company. Returns come from the business growing its earnings over time and, in some cases, from dividends paid to shareholders.
Shares can be bought outright or traded via derivatives. The two are very different in risk, cost and time horizon, and it is worth being clear which one a platform is offering you.
What to be careful of
- Owning shares differs from trading share CFDs
- Company-specific risk can be reduced by diversification
- Time horizon usually matters more than entry timing
Risk warning. Trading leveraged products involves significant risk and may not be suitable for all investors. You should understand the risks before investing.
The information provided on this website is for educational and informational purposes only. Nothing on this website constitutes personal financial advice, investment advice, or a recommendation to buy or sell any financial instrument. Users should conduct their own research and seek independent professional advice where appropriate.