A share is simply a divided-up unit of the value of a company. For example, if a company is worth £100 million, and there are 50 million shares, then each share is worth £2 (usually listed as 200p). Those shares can and do go up and down in value for various reasons. Companies issue shares to raise money and investors (that’s you) buy shares in businesses because they believe the company will do well and they want to ‘share’ in its success. There are two options when buying shares, you can either: 1. Own shares yourself; or 2. Pool your money with other people in a collective investment known as a fund For first-time investors pooling your money is a slightly safer option as you’re not putting all your eggs in one basket (as you’re not just investing in one company) and it means you can ride out any bumps in the market. The easiest and cheapest way to buy shares is online from what’s called a ’share dealing platform’. There’s the main stock exchange – the London Stock Exchange, where you get a whole host of companies including the really big players such as Marks & Spencer. Then there’s the Alternative Investment Market (AIM), which lists smaller developing companies that you may not have heard of. Sriracha, Thailand
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