A share represents a unit of equity ownership of the issuing company.
What are the types of shares?
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.
Companies in South Africa issue shares to raise capital from investors. Shareholders are owners of shares, and their ownership is established by the proportion or number of shares they own, which gives them with voting rights and dividends dependent on the type of shares they own. At the end of the fiscal year, a dividend is declared on the shares and paid to the investors/shareholders.
There are two ways to make money from owning shares of stock: dividends and capital appreciation.
You can buy shares in South Africa on the following share dealing platforms:
1) Capital.com
2) Libertex
3) AvaTrade
4) Plus500
1) Investment opportunities on dozens of international stock markets.
2) A person can easily create a highly diversified portfolio of stocks to mitigate risks.
3) Some online brokers allow you to trade without paying a commission.
4) Deposit and withdraw funds with a South African debit/credit card or bank account.
1) If the company fails, you could lose money.
2) There is no guarantee that the value of your shares will rise.
3) The dividend paid to a shareholder is not fixed.
1) Select an online stock trading platform.
2) Create an account.
3) Select the shares you want to purchase.
4) Make your purchase.
5) Make a payment for the transaction.
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