Stock market investments

Wednesday, 22 November 2006 03:35

Stock market investments are investments in publicly listed companies.

Investors effectively buy a share of a company, which can be traded on the open market.

This then returns a proportion of the company's profits, through dividends, while the value of the share increases and decreases as the company gains and loses value (capital growth).

Shares in companies can be traded electronically online, or through more traditional stock brokers and over the phone, although brokers and online dealing services generally charge a fee for buying and selling shares.

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