{"id":460803,"date":"2022-08-11T12:13:31","date_gmt":"2022-08-11T11:13:31","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=460803"},"modified":"2026-02-03T04:44:16","modified_gmt":"2026-02-03T04:44:16","slug":"share-trading-glossary","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-guides\/share-trading-glossary","title":{"rendered":"What are shares? (+ glossary of share trading terms)"},"content":{"rendered":"

If you want to start investing<\/a> your money, rather than keeping it in cash savings, buying shares in companies is one option to consider. Like any form of saving, investing in shares has pros and cons. Here\u2019s what you need to know.<\/p>

What is a share?<\/h3>

A share is a small investment unit representing a \u201cshare\u201d of the overall value of a company. Let\u2019s say (theoretically) a company is worth \u00a310 million and it has 2 million shares. Each share would be worth \u00a35. When you check the values of shares on stock market listings, they\u2019re usually listed in pence rather than pounds \u2013 so in this case 500p. Like any investment, the value of shares can rise and fall<\/a> depending on the success and popularity of the company, plus other factors.<\/p>

As well as benefiting, in theory, from growth in the share value, shareholders may also receive what\u2019s known as \u201cdividends<\/a>\u201c. These are typically paid when the company makes a profit. They may be paid on a regular or ad-hoc basis, depending on the type of shares you\u2019ve bought.<\/p>

Share trading glossary<\/h3>
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