A share is proof of ownership in a company. When you buy a share, you become a partial owner of that company. Companies issue shares to raise capital. They can use this money to invest in growth, develop new products, or expand internationally.

As a shareholder, you can earn money in two ways:

However, please note that if the company performs poorly, the share price may decline. Investing therefore involves risk.

Short example:

• Company X is worth €1,000,000.
• The company has issued 100,000 shares.
• One share is therefore worth €10.

If you buy 100 shares at €10 each, you invest €1,000.
You then own 0.1% of the company.

If the company grows and becomes worth €1,500,000,
the value per share increases to €15.

Your 100 shares are then worth €1,500.
You have made a profit of €500, excluding dividend.

However, if the company decreases in value, your investment will also decline.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.