What is a stock

Shares, also known as stocks or equities, are a piece of the ownership interests in a company. When establishing a company, the owners would typically have to raise money investors who then in return get some shares. As such, a share is divided-up unit of the value of a company. At inception, most companies have …

Making money from stocks

If you watched the movie ‘Wall Street’, it’s easy to be swayed into believing that making money from stocks is a matter of picking the right stocks, watching the ticker tape and trading them rapidly. While some people do make money that way, the vast majority won’t and perhaps more accurately, cant. Reason being that …

Why buy stocks

Broadly, there are two categories of people that buy stocks; investors and speculators. The latter are mostly interested in buying a stock because they believe they have the skill to detect a mispricing in the stock i.e. they buy the stock at a low price and sell when it goes up. Typically, this is just …