Buying shares is also suitable for beginners

A chart revealing that it is high time to buy stocks.

Buying stocks is a topic that has accompanied many investors for many long years. To some extent, it is something similar to investment in bonds. The only difference is that shares are slightly different and come with different advantages and disadvantages. If you want to appreciate your spare cash, this is one option.

  • What is a share
  • The difference between a share and a bond
  • Investing in shares

If you are not familiar with this form of investment, this article is for you. In the following lines we will tell you everything you need to know and you can to start buying shares.

General information about the shares

First and foremost, you should have an understanding of what a stock actually is. It is a share in the equity of a company. Very often you will come across the term security. A way for a company to raise capital for its business as well as a shareholder's ability to value its assets. The purchase of shares is very often associated with the concept of a dividend. This refers to the additional remuneration associated with the provision of capital.

Buying shares in questions and answers

There is a lot of information related to stocks as such. For example, you may encounter stock splits based on the sale of shares. These are terms such as surety issues, commission issues and many others. It is essential to know the pros and cons of such an investment. We will discuss these in more detail in the questions and answers below.

What can be the returns on shares?

These vary, of course, depending on the development of the market and the success of the company in question. However, the long-term average is around 10 % in the US market.

Can buying shares provide me with passive income?

Yes, but you have to expect a bigger investment.

What are the general advantages of shares?

Among the pros of this market is definitely the higher liquidity due to exchange trading. It is also a proper diversification.

Can I trade stocks with a small investment?

Yes, you can have amounts in the hundreds of crowns at the beginning of everything. Shares are for everyone.

What are the risks of shares?

This could be a change in the stock market and a decrease in the value of the company, which translates into a potential loss.

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