What are shares?
Many have owned shares. And many have even buy and sell shares. But how many really know what are shares? Maybe you would like to understand or get financial advice.
- Shares (also known as equities) are issued by company and own small fractions of a company. If you own one, you own a fraction of the company and a proportion of the company’s value.
- You can own shares all by yourself, or you can pool your money with other people in a collective investment and it is often known as a fund. A normally managed by an institution such as bank. Example, DBS Unit Trust.
- 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. The fund manager will choose the individual investments.
- When you own shares directly you become a shareholder. You have the right to vote on some company decisions such as AGM, Anual General Meeting.
Shares are bought and sold on the stock exchange, such as SGX, Singapore Stock Exchange.