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Why buy and sell shares?

You can use share to help you build wealth. You can do this in two ways:

  • buy shares at one price and sell at a higher price; and
  • earn income in the form of dividends from your shareholding.

Like any investment, shares have risks you need to understand before trading. You should seek independent advice from a professional adviser before making a decision.

A share price generally goes up because people value the shares in that company and offer increasingly higher prices to buy them. A share represents a part ownership in a company. If the company performs well, you can benefit from share price growth, income paid as dividends or both. There is no guarantee your shares will rise in price while you own them or that the companies you invest in will prosper.

Shares can also be used to bring diversity to your investment portfolio and play a part in your overall investment strategy. 

 

Investing in shares – tips and tools