Cookie Policy

We use cookies on our website and have placed these on your computer. By continuing to use our website you consent to this. For more information, including how to change your cookie settings and to disable our non-essential Google Analytics cookies, please refer to our Cookie Policy. If you do not wish to be reminded of this on each visit, please use the close button.

Stocks and shares explained

What are stocks and shares, how are they priced and can you time the market??

SEARCH STOCKS AND SHARES
  • Tools

    Search stocks and shares

    Find stocks and shares listed on the UK and global markets

  • EQi explains

    Share certificates

    Transfer share certificates into your EQi account for free

  • EQi explains

    Make more of your shares

    Attend AGMs, receive annual reports and dividend payments from companies

  • Tools

    Stock tips

    The latest UK stock tips and alerts from Stockomendation

What are stocks and shares?

Stocks and shares are familiar terms and are often interchangeable.

In fact, the ‘stock’ of a company is all of the shares into which ownership of a company is divided but, in the U.S., investors say they own ‘stock’ rather than ‘shares’.

Whatever term you use, and equities is another often in use, investors buy shares with the expectation that over time, the value of the shares will rise.

Companies issue shares as a way of raising money so they can fund and plan for growth. Shares are bought and sold electronically on a stock exchange, and many countries will have their own exchange.

The UK has the London Stock Exchange (LSE) and with EQi, investors can find and buy shares in companies listed here but also shares from companies listed on other major exchanges such as the New York Stock Exchange (NYSE).

Investment Risk Warnings

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.

The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.

Popular articles

  • How is the price of shares determined?

    The price of shares should reflect the performance of a company and expectations of how it will grow and sustain its profitability.

    As it is not possible to know what the future holds for any corporation, investors take a rational view on what market factors are at play but sentiment undoubtedly has a part to play in share price too.

    If investors believe a company will perform well, its shares attract buyers and push prices up. If a company falters, its investors lose confidence and look to sell in greater numbers, and so its share price will fall.

  • Think time in the market, not timing?the market

    ‘Time in the market, not timing the market’ is an old adage and is based on hard-won investing wisdom. No investor can judge the right moment to buy or sell every time.

    Plus, it may seem counter-intuitive but volatility can provide opportunities. Some of the best days in markets often come immediately after significant falls as investors can pick up shares at a good price.

    Investing regularly and over the longer-term usually produces positive results and you can read more about strategies for investing over time in our?insight?section.

Which account is right for you?

  • Dealing Account

    For individuals or a group of up to four people, access global investments with this flexible, unrestricted account

  • Flexible ISA

    Invest up to ?20,000 per year, take advantage of tax-free investing, and access your money at any time

  • SIPP

    Enjoy more control and access to a wider range of investment options and benefit from attractive tax advantages

  • Lifetime ISA

    Available for those aged 18-39, you can invest up to ?4,000 per year and?the government will add a 25% bonus up to a maximum of ?1,000