Shares
What is a share?
A share is a small piece of ownership in a company. When you buy a share, you own a tiny fraction of that business. The share’s price changes based on how the company performs and how much people are willing to pay for it.
How do you make money from shares?
Two ways. The share price can go up, so you sell for more than you paid. Or the company pays dividends (a share of its profits sent to shareholders as cash).
How do you buy shares?
Through an investment platform (a company that holds your investments), inside an ISA or GIA. You can buy shares in individual companies or buy a fund that holds shares in many companies at once.
Shares vs stocks
Same thing. “Shares” is more common in the UK. “Stocks” is more common in the US. You’ll see both used interchangeably.
Scrimpr’s ISA comparison covers more platforms than any other UK guide.
Compare ISA Platforms →Key points about shares
- A small piece of ownership in a company
- Price goes up and down based on the company and market demand
- Shares and stocks mean the same thing