investing in shares

What is a share?
A share is a title representing a fraction of the share capital of a company. Its acquisition gives the holder certain rights such as: the right to vote at a meeting, the right to information and the right to a share of the profits paid in the form of dividends.
Equities are listed on the primary market by issuing companies wishing to finance their development. They are then traded and exchanged between investors in the secondary market.

The price of a share
Initially at its nominal value, it varies according to:
The combination of supply and demand,
Of the market’s confidence in the ability of the issuing company to realize future profits.
The price is sensitive to the macroeconomic environment and to the microeconomic environment (company-specific environment such as its financial situation).

The two types of earnings expected when buying a stock
The purchaser of a share can expect two types of gains:
A capital gain: if the sale price of the share exceeds its purchase price.
A dividend: if the issuing company decides to redistribute part of these profits to its shareholders.

When to invest in shares?
Investment in shares is considered more risky than bond investment. Indeed, the performance of a stock investment depends directly on the performance of the company and therefore on its ability to make profits. It is therefore neither guaranteed nor predetermined. Moreover, the variation in the share price as a function of parameters that are difficult to predict can entail greater or lesser gains or losses. However, equity investments can be extremely attractive over the medium to long term. The recommended investment horizon is therefore at least 5 years.
Certain economic situations may favor investment in equities to the detriment of bond investment. Thus, in a period of rising stock prices, the rise in stock prices, favoring capital gains, can make an investment worthwhile.

investing in shares
Purchase shares online is not safe investement certainly for new people in business.
On one hand it s a good tip for people who have big knowledge about online job and good knowledge in shares investment they can do the job just by sitting home or from anywhere even on thebeach on their vacation.which make their life more easy and worthfull.
On the other hand,people who have no good knowledge,purchase shares online can be a big risk for their money,they can lost all their investment,so that it s not desirable for this type of people to take such a risk,instead they can put their money in good hands,someone that can do that for them.7
Personally,i don t advise people to purchase before they take good lessons about how to do this type of work,and there are too many organisation to teach them,beside the freelance who can teach people for cheap price and in easy and simple manners.only that time they can go ahead and earn easy money while sleeping on bed drinking coffee and enjoying watching movies.
At last,people should be aware about all online staffs because they are not all the time safe .

Share prices for a company can fall dramatically, even to zero.
If the company goes broke, you are the last in line to be paid, so you may not get your money back.
The value of your shares will go up and down from month to month, and the dividend may vary
The price of a share will go up or down if people change their minds about how well the company is performing, or about the economic conditions it in. If a share price reduces then the value of your investment reduces as well.investing in shares

However shares have historically provided better returns over the long run than the other main asset classes: property, cash or bonds.

Holding shares in just one company is very high risk. If that company gets into difficulties then you could lose some or all of your money. You can spread your risk by diversifying – buying shares in a variety of companies, and investing in other assets or countries – or by putting your money into pooled investments like unit trusts or OEICs
The shares of smaller companies are sometimes known as ‘penny shares’. They don’t meet the requirements for a full listing on the London Stock Exchange (they’re ‘unlisted companies’), so they’re bought and sold on other markets, like the Alternative Investment Market (AIM) and the Plus Quoted Market