A share is a type of ownership of a company. When you buy shares you become a part-owner of a company and share in the future profitability of that company.
You can buy shares directly via the stock market or indirectly, through a managed fund which invests in shares on your behalf.
Direct Shares may provide regular income through the payment of dividends and may also provide capital growth through increases in share prices.
Share ownership can be divided into two categories:
- Direct ownership – where you buy shares, usually through a stockbroker, or
- Indirect ownership – where you buy units in a managed investment which invests in shares.