Investor Education

What is a share?

The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.

Definition of Investing

Investing is a tool for building wealth, but it is not only for the wealthy. Anyone can get started on an investing program, and various vehicles make it easy to begin with small amounts and add to a portfolio periodically. In fact, what differentiates investing from gambling is that it takes time—it is not a get-rich-quick scheme.

What is a stock market / stock exchange

A stock exchange is an exchange (or bourse) where stockbrokers and traders can buy and sell shares of stock, bonds, and other securities. Stock exchanges may also provide facilities for issue and redemption of securities and other financial instruments and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as “continuous auction” markets with buyers and sellers consummating transactions at a central location such as the floor of the exchange.

Stockbroker

A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients through a stock exchange or over the counter in return for a fee or commission.

Asset Management

Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets (such as buildings) and to intangible assets such as human capital, intellectual propertygoodwill and/or financial assets). Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. The term is most commonly used in the financial sector to describe people and companies that manage investments (asset managers) on behalf of others. These include, for example, investment managers that manage the assets of a pension fund.