What Are Shares? A Beginner's Guide to Investments

Name: What Are Shares? A Beginner's Guide to Investments
Uploaded: 2023-07-10 19:19:05
Description: Shares represent ownership in a company and can be bought and sold, allowing individuals to become shareholders and potentially earn profits through dividends or selling their shares.

This article is a summary of a YouTube video "ИНВЕСТИЦИИ ДЛЯ ЧАЙНИКОВ - Что такое акции?" by Личные финансы просто

TLDR Shares represent ownership in a company and can be bought and sold, allowing individuals to become shareholders and potentially earn profits through dividends or selling their shares.

Key insights

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"Investing in stocks can be a great way to grow your wealth and achieve financial independence."
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As a company grows, it may transition from selling products to also producing and distributing them, expanding its reach and potentially becoming a public company.
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Owning shares in a company allows individuals to become shareholders and have a stake in the company's ownership.
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Companies are not typically divided into 1000 shares, but the concept of owning a small percentage of a giant company by buying just one share is still applicable.
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The value of a share is determined by the value of the company divided by the number of shares, which explains why share prices can vary significantly between different companies.
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Investing in stocks can potentially double your investments if the share price increases, providing an opportunity for profit.

Timestamped Summary

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00:00
Shares are a way to invest in a company, and this video will explain the basics of how they work.
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00:46
Vasya and his friend started a small business together, with each owning 50% of the company.
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00:54
In this scheme.
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00:56
A private company that sells chocolate becomes a public company by dividing its shares into smaller pieces and offering a portion to the public.
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01:36
Anyone can become a shareholder in a company by owning a share, which represents a portion of the company's value.
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02:10
If you buy one share, you will own a small percentage of the company, but companies are usually divided into a much larger number of shares.
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02:34
The value of a share is determined by dividing the value of the company by the number of shares, and the cost of a company is equal to the cost of its shares multiplied by the number of shares.
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03:15
Owning shares in a company means being a shareholder, and you can potentially double your investment by selling the shares or receive dividends based on the company's profits.