What is buying shares?

Buying shares refers to the process of purchasing shares of a company, keeping in mind the sequence of steps to be followed. When an investor, be it an individual or entity, purchases shares of a company, the latter gets an opportunity to raise funds to explore, expand, and grow its business.

How to buy the best shares?

Buying the best shares is what all investors look up to. However, here is a list of steps involved in purchasing shares: Investors, be they individuals or entities, have to open a brokerage account, which helps in a convenient share transaction. When one opens this account, they are open to multiple options regarding buying or selling of stock.

Can you buy a share from an exchange?

Shares trade in exchanges, but one cannot go and buy a share from the exchange. Instead, there are a few steps engaged in purchasing a share. Five parties are involved in the share transaction: the company, exchange (trading platform), broker, depository bank, and investors. Shares are one of the approaches to creating wealth.

What is the value of a share?

The value of a share depends on several key market principles. Put simply, a share’s value is what people are willing to pay for it if is on sale. Shares are not sold at any given time though – the transaction of shares strongly depends on the liquidity of the market.