2

Shares

In this chapter we will look at the basics of share ownership and stock markets. These are important, because by developing your understanding of the principles of how the markets work, you will be able to follow and act on any advice you receive from your brokers or other advisers much better. The stock markets are truly a place where knowledge is power – make it your business, as a guerrilla investor, to keep learning as much as you can. If you are a UK taxpayer you should read the section on Individual Savings Accounts (ISAs), carefully. These can be an attractive way to invest in shares. The topics covered in this chapter are:

  • What are shares for?
  • Why shares exist – the capital markets
  • Stock exchanges
  • Buying and selling shares ...

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