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To make money. Money can be made in three ways from the purchase of shares: 1. By receiving dividends 2. By the value of the shares increasing from the price at which they were first purchased. Then they can be sold at a higher price back to the stock market. 3. Or both.

The most common way to buy and sell shares is on the share market using a broker or broking service. You can also buy shares through a prospectus when they are first put on the market or indirectly through a managed fund. Another way to buy shares is through an employee share scheme.

Unlike mutual funds, which can be purchased in fractional units, shares of stock cannot be divided. So, the smallest number of shares an investor can buy is one share. There is a catch that could determine for investors just how many sharesthey will want to purchase - commission fees.

The Bid And Ask Prices Are Stock Market Terms Representing The Supply And Demand For A Stock. The Bid Price Represents The Highest Price An Investor Is Willing To Pay For A Share. The Ask Price Represents The Lowest Price At Which A Shareholder Is Willing To Part With Shares.

Investing in stock markets is overwhelming and risky at the same time since we don't know how and where to get financial advice and information. One should consider the following indicators to know the health of a stock:Company earningsPrice to earnings ratio and price to book ratioDividend payout and its consistencyEnterprise value-to-free cash fl

Stocks represent your share in the ownership of any company. If you hold a certain number of shares or stocks, you are part owner and have voting rights to take part in the business decisions.