There are many reasons to invest in shares. Some of us treat it as a bit of a punt, in it for the thrill of pitting our share selection skills against other players in the market. Others look to the market as a generator of long-term wealth. Whatever the motive, with thousands of shares listed on the stock exchange, how can an investor choose which ones to buy? Let’s look at a few key considerations.

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This article explains what it means to buy shares in a business. It focuses on the emotional side of investing and discusses the benefits and responsibilities of a shareholder.

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Whether it’s by direct purchase, via a managed fund or through superannuation, most Australians hold some form of share investment. Many of us are aware that if the numbers in the finance report on the evening news are mostly green that’s good and if they’re red that’s bad, but beyond that we give little thought to what shares are and why we should take an interest in them.

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