greenieS
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Shares are parts of companies, units of their capital, that are generally sold to bring a stream of funds into the business. When you own one or more shares in a company, you are a shareholder. Buying shares involves rights but also obligations. Shareholders are entitled to a share of the company's future earnings, which would be distributed as dividends and other benefits, as well as the right to vote at general meetings of shareholders. In addition to dividends, when you invest in stocks, you can also gain from the positive evolution of the price between the time of purchase and the time of sale. . The main obligation of the shareholders is the contribution to the capital, respectively the payment of the share price.
The shares are dematerialized and traded electronically, being one of the most popular investments on the capital market, because they represent an optimal balance between the risk assumed (higher than in the case of bonds, but also lower than in the case of leverage instruments). and the expected potential gain (which should be above the bond interest rate).
There are two main types of shares, common and preferential, both granting ownership. In addition, the preferred shares do not allow voting rights, will receive dividends before the ordinary shareholders are received and have a higher claim on the company's assets (for example, if a company goes bankrupt, the preferred shareholders will be paid before the regular shareholders).
Advantages of investing in shares:
Very liquid because they are easy to buy and sell;
Higher earning potential than bonds;
No annual or permanent fees;
Control over the companies in which you want to invest in the stock market;
Economically efficient.
Disadvantages of investing in stocks:
They have a higher degree of risk than bonds - there is a risk of losing the entire investment;
High price fluctuation - the investor must be emotionally prepared for a stock price roller-coaster in a short period of time;
It is time consuming as investors need to analyze and monitor each individual stock in their portfolio;
You pay a commission to buy shares on the stock exchange.
Investment diversification is a way to reduce investment risk.
Warning:
Being an investor involves taking a risk in order to make as high a profit as possible. Each person assumes the risk according to their individual tolerance for it. There is no one-size-fits-all investment formula and no risk-free financial instrument!
Investment products are not savings products or banking products. The past performance of financial instruments is not a guarantee of their future performance. Read the prospectus before investing.
The shares are dematerialized and traded electronically, being one of the most popular investments on the capital market, because they represent an optimal balance between the risk assumed (higher than in the case of bonds, but also lower than in the case of leverage instruments). and the expected potential gain (which should be above the bond interest rate).
There are two main types of shares, common and preferential, both granting ownership. In addition, the preferred shares do not allow voting rights, will receive dividends before the ordinary shareholders are received and have a higher claim on the company's assets (for example, if a company goes bankrupt, the preferred shareholders will be paid before the regular shareholders).
Advantages of investing in shares:
Very liquid because they are easy to buy and sell;
Higher earning potential than bonds;
No annual or permanent fees;
Control over the companies in which you want to invest in the stock market;
Economically efficient.
Disadvantages of investing in stocks:
They have a higher degree of risk than bonds - there is a risk of losing the entire investment;
High price fluctuation - the investor must be emotionally prepared for a stock price roller-coaster in a short period of time;
It is time consuming as investors need to analyze and monitor each individual stock in their portfolio;
You pay a commission to buy shares on the stock exchange.
Investment diversification is a way to reduce investment risk.
Warning:
Being an investor involves taking a risk in order to make as high a profit as possible. Each person assumes the risk according to their individual tolerance for it. There is no one-size-fits-all investment formula and no risk-free financial instrument!
Investment products are not savings products or banking products. The past performance of financial instruments is not a guarantee of their future performance. Read the prospectus before investing.
