A small piece of a business
A share is a small ownership stake in a company. Its price changes as buyers and sellers respond to news, results and expectations. A good company is not automatically a good investment at any price.
Two ways returns can happen
The price may rise, so you could sell for more than you paid. Some companies also pay dividends, which are cash payments to shareholders. Neither is guaranteed, and you can lose money.
Stocks, funds and indices
A stock is one company. A fund holds a collection of investments. An index, such as the FTSE 100, tracks a group of shares. An ETF is a fund traded on an exchange; some ETFs track an index.
Your first research checklist
Understand what the company does, how it earns money, its debt and the risks. Check fees and the currency of the investment. A company name you recognise is only a starting point.
Sources and further reading
Provider settings and financial products can change. Check original sources before acting. These guides explain concepts and do not recommend individual investments.