Finance 101: What are Shares? A guide for beginners

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

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

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

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

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

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

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.
 

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