Equities (or shares) are one of the most popular forms of investment, in large part due to the fact that historically, shares as a group — though not every share on its own — have produced higher returns than other types of investments.
Shares are generally bought and sold on a stock exchange, via a broking platform like EasyEquities, and at its simplest, a single share represents a single unit of ownership in the company.
Shares are considered growth investments because their value can rise and the owner may therefore be able to make money by selling shares for a higher price than they initially paid for them.
A share owner may also receive income from dividends, which are effectively a portion of a company’s profit paid out to its shareholders.
It is important to note that share prices change from day to day and the value of shares may fall below the price a share owner initially paid for them meaning shares are generally best suited to long term investors, who are comfortable withstanding these ups and downs.