A share represents a unit of equity ownership of the issuing company.
Broadly, there are two types of shares
1. Equity shares
2. Preference shares
‘Stock’ represents the holder’s part-ownership in one or several companies whereas ‘share’ refers to a single unit of ownership in a company.
South African companies issue shares to raise funds from investors. Shareholders are owners of shares, and their ownership is determined by the proportion or number of shares that they possess, which provides them with voting rights and dividends based on the type of shares they own. A dividend is declared on the shares at the end of the fiscal year and paid to the investors/shareholders.
There are two ways to make money from owning shares of stock: dividends and capital appreciation.
What are the benefits of shares?
1. Part-ownership of a company.
2. Opportunity for capital growth.
3. Earn dividend income.
1. Dividend which a shareholder receives is not fixed
2. High volatility
3. Capital loss if the company fails.
1. MTN Group Ltd
3. Thungela Resources Ltd
4. BHP Group Limited
5. Glencore PLC
6. Absa Group Ltd
According to Refinitiv’s survey of analysts, Absa, FirstRand, Nedbank, and Standard Bank are the banks that are best for buying shares and have long-term buy ratings.
1. Find the desired share to invest.
2. Select a stockbroker.
3. Set up an Account.
4. Purchase your first shares on JSE.
