Beginners Guide to Shares – The Sure Way to Make Money

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Over a period of time, it has been tried, tested and proven that buying and selling of shares is one of the easiest ways to make money and grow one’s wealth over the long term. Interestingly, a lot of people know this truth but they do not know actually how one makes money from the stock market. Share are called so because they represent pieces or portions of companies, and once one becomes a shareholder of a particular company, one is entitled to a proportional share of the company’s profit or losses up to the extent of the shares one actually holds. That notwithstanding, there is indeed a beginners guide to shares, despite the fact that there are a lot of tenets associated with the stock market.

Nevertheless, the question that everyone wants an answer is how can one make money in the stock market? Well, there are only two simple way to do so, namely; an increase in share price and dividends. An increase in share is a result of the increment in profits and the market valuing which is caused by an expansion in the business making each share represent a greater ownership, dividends on the other hand, refer to the earnings paid out to the shareholder after the lapse of each financial year.

Every now and then, when the stock market is on a high, one need to wait until the reception of the dividends, instead one can seize the opportunity and make a profit by selling the selling the respective shares for a value which is more than the company is worth. Nevertheless, a shareholder’s returns rely on the underlying profits sourced from the companies they own.

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