Investing in shares means buying and keeping them for a while in order to make money. There are two ways of getting money from shares of a company:If the company grows and becomes more valuable, the share is worth more – so your investment is worth more too.Some shares pay you part of the company’s profits each year, called a dividend.Investing in shares. Shares are one of the four main investment types, along with cash, bonds and property. They carry risk, but they can offer the highest returns.Shares, also known as equities, provide you with part-ownership of a company so when you invest in shares; you are buying ‘a share’ of that business.Shares are easy to buy and sell and can help you diversify your investment portfolio.
Shares (also known as equities) are like tiny fractions of a company. If you own one, you own a little bit of the company and a proportion of the company’s value.
You can own shares yourself, or you can pool your money with other people in a collective investment often known as a fund.
Funds buy a selection of shares, which are chosen and managed by a fund manager. If you put your money into funds, you don’t have to do the work of choosing the individual investments.
When you own shares directly you become a shareholder, which usually means you have the right to vote on some company decisions. This doesn’t happen if you invest in a fund.

Investing in shares.Shares are often surrounded by mystique but the principle behind them is simple and straightforward. Shares, also known as equities, provide you with part-ownership of a company so when you invest in shares; you are buying ‘a share’ of that business. Companies issue shares to raise money and investors buy shares in a business because they believe the company will do well and they want to ‘share’ in its success.

Companies do not have to be quoted on the stock market to issue shares. When businesses start out, many of them raise money from outside investors, who are given a share of the company in return. These investors tend to be friends, family or benefactors and their shares are known as unquoted because the companies are not listed on any stockmarket.

Owning shares in a company means that you are entitled to a say in its affairs. All PLCs have annual meetings, where shareholders vote on matters such as the company’s accounts, directors’ appointments and pay packages.
Companies also hold meetings for shareholders when they are about to make big changes to their business, such as buying or selling parts of the company or raising fresh capital
Trading in shares is executed by stockbrokers, who buy and sell shares on behalf of investors. Increasingly, investors buy shares over the internet, using online broking services

investing in shares
You may be eager to get started, so you can also benefit from the fabulous returns that you hear so much about, but take a moment and take a moment to contemplate some simple questions. The time you spend now to consider the following will save you money later.
What kind of person are you? Are you a risk taker, willing to invest with generosity by only having a chance to win a lot, or do you prefer a ’safer’ trajectory? What would be your reaction to a 10% drop in value in 24 hours, or a 35% drop in a few weeks? Would you liquidate all your positions in a panic?
The answers to these and other similar questions will lead you to consider various types of equity investments, such as mutual funds or index funds, rather than individual stocks. If you are naturally inclined not to take a risk, and any exposure makes you uncomfortable, but you still want to invest in stocks, your best bet may be mutual funds or Index funds. The reason is that these funds are well diversified and contain many different values. This reduces the risk, and does not require you to study individual values.