Stocks & Shares

• existing shares which are already being traded on a stock market
• new shares when a company first sells them to raise money for its business (for example a stock market flotation, or buying private shares in a small business start-up)

How Do You Make Money Out Of Shares?

The value of shares generally rises and falls in line with the performance of a business. If the company does well you may be able to sell your shares at a profit at a later date. If it doesn't your shares may fall in value or even lose their value altogether. 

A company doing well may also pay you dividends income taken from its profits. Dividends may rise and fall in line with how well the company is doing, but may not always be paid.

Buying and Selling Shares

You normally buy and sell shares through a stockbroker. You can ask a financial adviser or investment manager, but they will still deal through a stockbroker.

Stockbrokers offer three main types of service:

You can deal with stockbrokers by phone, face to face, over the internet or by post.

You can find out more about shares, including how to buy and sell them and points to consider before investing, on the Financial Services Authority (FSA website).