Have you ever thought about how you can own a small piece of a big company like Apple or Google? The answer lies in shares. Shares are small parts of a company that you can buy, giving you a claim on the company’s profits.
For those curious about ano ang shares, understanding how they work can open the door to a whole new world of investing. This guide will explain everything you need to know, from buying shares to earning money through them.
Shares are pieces of ownership in a company. When you buy a share, you become a part-owner of that company, even if it’s just a small part. Various organisations sell shares to raise money for their operations, and in return, shareholders get certain rights, like receiving a portion of the company’s profits. It is a way for regular people to invest in companies they believe in.
Buying shares is easier than you might think. First, you must choose a stockbroker, a platform that helps you buy and sell shares. After you sign up, you may now fund your account with money.
Next, search for the company you want to invest in, decide how many shares you want to buy, and place your order. Once the order is completed, you officially own a part of that company. Congratulations, you are now a shareholder.
Not all shares are the same. There are two main types: common shares and preferred shares. Common shares are the most popular and give you the right to vote at company meetings. They even give a share of the company’s profits through dividends. Preferred shares, on the other hand, usually do not come with voting rights but provide a more guaranteed form of income through fixed dividends. Understanding the difference can help you decide which type is right for you.
Share prices do not stay the same. They go up and down based on several factors. The most common factor is supply and demand.
If many people want to buy a company’s shares, the price goes up. If many want to sell, the price goes down. Some factors may be company news, economic events, and industry changes. Even a positive or negative news story about a company can make its share price rise or fall quickly.
There are two main ways of earning money from shares. The initial one is through dividends, which are payments companies make to their shareholders from their profits. Not all companies pay dividends, but many do, especially big, stable companies. The second way is through capital gains, which means selling your shares for a higher price than you paid. For example, if you bought a share for $10 and later sold it for $15, you made a $5 profit.
Owning shares is like having a small stake in the success of a company. It gives you a chance to earn money through dividends and capital gains. For beginners who want to know, ano ang shares are a gateway to becoming a part-owner of some of the world’s largest companies. Understanding shares is a valuable first step in determining whether you are interested in long-term growth or just exploring how investments work.
