Quick Answer: What Happens If You Buy A Share?

Owning shares means you’re also a company owner.

When you buy shares, you’re buying a share of the company’s assets and its profits.

In fact (and in law), you’re a part owner of the company.

What happens when you buy one share?

Your tax situation can benefit from using the tax advantages that come with fully franked dividends. Owning shares means you’re also a company owner. When you buy shares, you’re buying a share of the company’s assets and its profits. In fact (and in law), you’re a part owner of the company.

What does it mean to buy a share?

Buying a share of stock of a company simply means you are buying a unit of the company. Investors are able to buy the stocks of the company once the company share is launched in the market. Investors gain or lose money in the market depending on the perceived value of the company.

Who gets the money when you buy a stock?

So when you buy the stock from stock market, you’re actually buying from one of the guys who owns it, and in this case the money you paid to buy the stock goes in the hands of the owner of that share. And now after buying those shares when you sell them to any new buyer, the money comes in your hands.

Are shares a good investment?

Share prices can go down as well as up so buying shares is not without risk, but over the long term, they can generate good returns. If a company is making substantial amounts of money and making significant dividend payments, it is usually considered a good investment so the share price rises.