Funding of Shares

Share funding

What are shares?

  • Shares (also known as equities) are like tiny fractions of a company. If you own one, you own a little bit of the company and a proportion of the company’s value.
  • You can own shares yourself, or you can pool your money with other people in a collective investment often known as a fund.
  • Funds buy a selection of shares, which are chosen and managed by a fund manager. If you put your money into funds, you don’t have to do the work of choosing the individual investments.
  • When you own shares directly you become a shareholder, which usually means you have the right to vote on some company decisions. This doesn’t happen if you invest in a fund.

How does investing in shares work

Investing in shares means buying and keeping them for a while in order to make money.

There are two ways of getting money from shares of a company:

  • If the company grows and becomes more valuable, the share is worth more – so your investment is worth more too.
  • Some shares pay you part of the company’s profits each year, called a dividend.

If you buy shares in larger, long-established companies you’ll probably get dividends, but you might not get rapid growth.

Get expert advice

Investing in shares can be complex. Professional financial advisers can help.

How can we help you?

Contact us for more information by visiting our office or submit a business inquiry online.

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