| A share is defined in the world of finance as a unit of | | | | shares in a company is crucial; if you find a company |
| account for various financial instruments including | | | | with good long-term growth prospects you can reap |
| stocks, mutual funds, limited partnerships, and REIT's | | | | the benefits of increasing capital gains while |
| (Real Estate Investment Trust). In the English | | | | simultaneously collecting dividend pay outs. |
| language the use of the word share to refer solely | | | | Buying shares is very easy today with ease of |
| to stocks is very common and it has come to be | | | | access that the internet has brought about. There |
| synonymous with the word stock itself. | | | | are a few different ways in which to buy shares |
| In laymen terms, a share or stock is a document | | | | however, some people prefer to use a stock broker, |
| issued by a company that entitles its holder to part | | | | this is a person or a firm that trades on behalf of the |
| ownership in the company. A share can be issued by | | | | client, you tell them what you want to invest in and |
| a company or may be purchased from the stock | | | | they will issue the buy or sell order. A full service |
| market via a stock broker. We often hear the term | | | | stock broker will provide various services, at a fee, |
| "dividend" in the news media but people new to | | | | some of these services include investment research |
| share trading can be sometimes be confused as to | | | | advice, tax planning, and retirement planning. There |
| what exactly a dividend is. Dividends are payments | | | | are also discount brokers who will allow you to buy |
| made by a corporation to its shareholders. It is the | | | | and sell shares at a low rate but don't provide any |
| portion of profits that the company has earned paid | | | | investment advice. Finally, for people who do not |
| out to shareholders. Corporations can either re-invest | | | | need or want assistance from an actual stock broker |
| their profits in the business, or pay profits out to the | | | | there are online brokers that allow you to buy and |
| shareholders as a dividend. Often times, corporations | | | | sell shares entirely over the internet with no need for |
| will retain a portion of their earnings and pay the | | | | a human stock broker. |
| remainder as a dividend. | | | | Share trading has exploded in popularity recently with |
| Dividends are one reason why share trading is so | | | | the advent of wireless internet and ever expanding |
| popular amongst investors and traders. If the | | | | Wi-Fi "hot spots". It is entirely possible to now buy |
| company you own shares in makes a profit and pays | | | | and sell shares in a company over certain cell phones |
| out a dividend, you will earn the dividend and still hold | | | | that are internet enabled. For most retail traders and |
| your share position. If you choose to sell your shares | | | | investors who spend the time to do a little extra |
| you will make a capital gain in addition to the | | | | research on shares of companies they are interested |
| dividends you have earned over the years, a capital | | | | in buying, share trading is very lucrative and is a great |
| gain is the money you gain if your shares have | | | | way to diversify your finances. Share trading allows |
| increased in value since the time of purchase. | | | | people to participate in all kinds of sectors, brands, |
| However, it is also possible to incur a capital loss if | | | | and services. The ease and simplicity of internet |
| you sell your shares at a price below what you | | | | share trading has made it possible for anyone who is |
| bought them for. Proper research before buying | | | | interested in buying shares to do so. |