What are shares? Definition & Meaning - nextmarkets Glossary

First of all, we will take a look at exactly what are shares in a company and how this differs for private companies and businesses listed on stock exchanges. Any legitimate business has shareholders who own a part or all of the company. So a private business may be owned and operated by two people, say, and it’s likely they would each own a 50% share of their company.

At the time their private business announces profits for the trading year, these two owners would probably be entitled to share this cash between them. When a business is listed on a stock exchange the price that will be charged for each share is calculated very carefully and an Initial Public Offering allows the business to raise money from all shares sold.

Here’s a more clear-cut summary of the stocks and shares definition highlighted above. Basically, a share in a company listed on stock exchanges relates to part-ownership of the business. Companies can list as many shares in their business as they choose, just so long as their organisation has sufficient capital or turnover. It is also possible to issue more shares in a listed business, and this is discussed later on in the guide.

Stocks is the plural terminology for a number of shares. For example, you would own stocks, if you owned shares in companies such as Marks and Spencer plc, Shell Trading International and Unilever. You can learn all about how to buy shares when you sign up with nextmarkets.

When you open a share trading account with nextmarkets you will learn more about the ways you can earn money from shares. For example, you will profit if your shares increase in value and you may also earn dividend payments each year if the companies in which you own shares make profits.

Also, if you do invest in discounted shares that are part of a rights issue, you could benefit immensely from the increased value of a higher number of shares. The coaches at nextmarkets can help you make tricky decisions on rights issues and share purchases, to maximise the potential value of all your investments.

The important thing you need to remember when considering investing in shares is that share prices can increase or fall, so buying shares can be risky if you don’t have good knowledge of the companies in which you buy them. That is why the coaches at nextmarkets are so valuable for new investors, and also, understanding when to buy individually or when to look at diversifying the portfolio. If you want to experience all the fun of investing shares, then signing up with nextmarkets offers a valuable education in stocks and shares for beginners. Sign up for our educational stock broker app today to find out more.

Finally, then, our coaches define the very real stocks and shares difference for any beginner interested in investing in shares as follows: Shares in a company are listed on their respective stock markets. Anybody can buy shares in a company and when they own shares in more than one listed business this is termed as owning stocks or being a stockholder.

Shares are also known as equities and you can find out more about share dealing and the answer to ‘what are shares’ when you browse our guides and video tutorials. This definition underscores the lengths our coaches are willing to go to in order to secure a well-informed trading session for our users.

Looking for a brief introduction to investing in shares in the UK? The UK stock exchange is called the London Stock Exchange which consists of a number of markets. Shares are traded on the FTSE-100 Index, the FTSE-250 Index and the FTSE-All Shares Index. You can also buy shares on AIM, which is the Alternative Investments Market. Buying UK shares is much cheaper and easier when you team up with an online stock broker like nextmarkets which sends you real-time updates and makes it easy to monitor the performance of your shares and specific companies, so why not try out our demo account to find out more?

If you want to find out how is a shares trader defined, then you are probably about ready to launch your own career in dealing with shares. A shares trader can be a person who deals shares as a sideline or can be a professional trader who makes a lucrative living out of trading shares on a regular basis. If you buy and sell shares with a trading platform like nextmarkets, then you will become a shares trader.

You may want to build your shares into a portfolio to hold onto for investment purposes and this can be profitable than saving through banks. Over the long term, shares have performed extremely well and made profits for shareholders. Alternatively, you may want to experience the buzz and highs of daily shares trading and attempt to profit from these sales. Our coaches at nextmarkets can help you achieve your goals and ambitions.

There are many good reasons to sign up for a nextmarkets share trading account. If you’ve always wanted to find out about global stock markets and learn how to invest in shares, our educational guides and video tutorials provide all you need. You also benefit from expert coaching and share buying ideas from professional traders who understand global markets and are prepared to share their tips and wisdom with new and existing investors.

And finally, the nextmarkets trading platform is simple and easy to use and offers everything needed for mobile share dealing in any location, at any time. Sign up for our demo account now and experience the fun and highs of trading shares on a regular basis.