Share investing for absolute beginners
What is a share and how do I buy one?
At its simplest, a single share represents a single unit of ownership in a company.
Companies such as Commonwealth Bank of Australia (CBA), Rio Tinto (RIO) and Woolworths (WOW) are listed on the Australian Securities Exchange (ASX)—commonly known as the stock market or stock exchange. Although these big names are among the most well-known, more than 2,000 companies are listed on the ASX.
When you buy shares in one of these companies—even a very small number of shares—you then own a small part of that business.
You need to use a third party, called a ‘broker’, to conduct the actual transaction of buying or selling shares.
How can I make money from shares?
People aim to make money…
