When you buy a “share” in a particular company, you are essentially buying a small part of that company. The share price will rise or fall depending on how anxious investors are to have exposure to that company. This will fluctuate not just on the fortunes of that corporation itself, but also on investor sentiment concerning the market as a whole. Share owners are also in line to receive a dividend as a return on their investment. This is also something which is disbursed to buyers of company shares through CFDs or spread bets
Trading shares?
You can trade shares using CFDs or via spread betting. Both these products are traded on margin and employ leverage. This means that you only have to put up a relatively small proportion of the value of the trade to open a position. It also means that you can go short as well as long. In other words it’s as easy to back your judgement that a share will fall in value as easily as it will rise. This is not something that is generally practicable when trading the underlying stock.
