Shares
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What are the advantages and disadvantages of Shares?
I know that they are more risky than Gilts or deposit accounts!
Buying and selling of stocks and shares are done on the stock exchange so that companies can raise long term finance and investors can buy or sell shares.
Any help appreciated as cannot find anything in the credit and control management book.
Lisa
I know that they are more risky than Gilts or deposit accounts!
Buying and selling of stocks and shares are done on the stock exchange so that companies can raise long term finance and investors can buy or sell shares.
Any help appreciated as cannot find anything in the credit and control management book.
Lisa
0
Comments
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Re:Shares
The advantage is higher returns than no-risk investments such as banks and government bonds.
The disadvantage is the risk you take, in that dividends might be lower then expected or the share price might fall. People try to reduce risk by investing in a large range of shares to reduce risk (otherwise known as portfolio theory)
You might also want to contrast the liquidity of the differing types of investment options.
Wasn't sure if this statement:
"Buying and selling of stocks and shares are done on the stock exchange so that companies can raise long term finance and investors can buy or sell shares.
"
was a question or not.0 -
Re:Shares
Lincs
Thank you for your answer, it is all I needed to know.0