Beginner Shares Series: Why Invest in Shares?

In this article:

In part 1 of the Beginner Shares Series, Owen Raszkiewicz answers:

  • What are shares? (click here to learn more)
  • Why do people buy shares?
  • How much money do I need to buy shares?
  • Are shares risky?
  • Do I need an investment plan?

Shares 101

Shares represent an ownership stake in a company, similar to the way you would own a house.

But a public company on the sharemarket can have hundreds of thousands of other shareholders just like you.

Companies can also use debt, which is just like a mortgage on a house.

In the event that a company goes out of business, the banks and other owners of the debt would get their money before you do. It’s the same as if you sold your house, the bank would get its money first.

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Owen Raszkiewicz

Owen Raszkiewicz

Owen is the Founder of Rask Australia, Lead Investment Analyst for Rask Invest and head educator at Rask Education. Prior to founding Rask, Owen was an investment analyst at the highly regarded managed funds research business Zenith Investment Partners and a Writer/Analyst for The Motley Fool Australia. Owen’s formal qualifications include a Master of Applied Finance and Master of Financial Planning from Kaplan Professional, Bachelor of Technology (Information Systems) from Swinburne University of Technology, Advanced Diploma of Financial Services (Financial Planning) and Diploma of Mortgage Broking Management. He's also completed level 1 of the Chartered Financial Analyst (CFA) program.

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