Stocks and Shares (1)

Stocks and Shares

When you buy stocks or ordinary shares, you own part of the company and have the right to vote at general meetings.

Each share is a small stake in a company and you can buy small or large number of lots depending on the amount of money you have.

As a shareholder, you can benefit from the profits earned by the companyin the form of dividends paid to you, and also from the growth in the value of the company.

But why do companies issue shares?

The company benefits by raising funds to operate and expand its business without having to borrow the money from other sources such as banks.