Is a partial ownership of a publicly traded company that has been bought for sale in the stock market, whereas the share is a portfolio or a group of shares of different companies. The value of the shares also changes over time, and investors can take advantage of the purchase of the licensed shares and sell them later at a higher price.
The stock trade goes according to market movement. For example, the value of a certain company's shares will increase in the corresponding months because it is about to launch a new product and you think it will be very popular and wide. You can buy 500 shares at $ 20 a share, $
If the price rises, you have the possibility of selling the shares and making profits. If the price falls, you will lose. In addition, you have to pay a commission to the broker when you buy and sell the shares. This reduces potential profits and increases potential losses.
If you want to predict price changes, you also have the option to use CFDs, which means you will only need $1,000 to control the same value of $ 10,000 worth of shares. If prices rise, you will generate a lot of profits, develop your own investment, Since there are no fees or commissions when you invest in CFDs, you can also avoid paying the Broker's commission.