Shares: iVillage

Firstly you can buy individual shares in say one or two companies yourself. You can do this through a stockbroker, or the share dealing service of banks or building societies or even on the Internet.
You could consider pooled investments, like Open Ended Investment Companies (OEICS), unit or investment trusts or investment bonds. These pool the cash of hundreds of other investors and invest in lots of different shares to try to spread the risks and costs of investing.

How do I make money?
You can make money if the value of your shares rise, although this is not guaranteed as prices go up and down. You can also earn an income from the shares, known as a dividend.

Unless you invest in shares through an ISA, you'll have to pay tax. You'll find more information in ISAs. For general information about tax on savings and investments visit our tax section. For specific information visit an Independent Financial Adviser (IFA). You'll find details of your local IFA in Yellow Pages (www.yell.co.uk), or visit www.unbiased.co.uk.

Want to find out more about shares? Then click on the links below

What's a share?
A share is a legal document issued by a company. The person who holds the share has part ownership of that company.

How do I buy or sell shares in the stock market?
You can buy and sell shares through:

Your bank/building society, they often have a share dealing service
Via stockbrokers, who also may be able to offer you advice on buying and selling shares
Over the Internet

Some Internet-based sites offer set fees, often around £10, if you just want to buy or sell shares, so these can be more cost effective than other channels if you are wanting to sell or buy small numbers of shares and don't need any advice.

To find an online share dealing service visit www.find.co.uk. Fees for each channel vary though so it is best to speak to them direct. Remember whichever way you choose to buy or sell shares you'll have to pay dealing costs, stamp duty and sometimes tax.

What about buying shares through the company I work for?
As well as being able to buy shares in the company you work for through the channels above, many larger companies offer you other ways to become a shareholder. The main ways are employee share save schemes and profit share schemes.

Speak to your company human resources department to see if your company offers these schemes and for more information.

How can I keep track of my shares?
Movements in the stock market and individual share prices are reported regularly on the television, on the radio and in newspapers. You can also see how shares are performing by looking at Internet sites, phoning up a share price number or looking on teletext.