In part 1 of the Beginner Shares Series Owen Raszkiewicz answers:

  • What are shares? (click here to learn more)

  • Why do people buy shares?

  • How much money do I need to buy shares?

  • Are shares risky?

  • Do I need an investment plan?

Shares 101

Shares represent an ownership stake in a company, similar to the way you would own a house.

But a public company on the sharemarket can have hundreds of thousands of other shareholders just like you.

Companies can also use debt, which is just like a mortgage on a house.

In the event that a company goes out of business, the banks and other owners of the debt would get their money before you do. It's the same as if you sold your house, the bank would get its money first.

Test Your Knowledge

Typically, why do people own shares?

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