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What is a share?

A share is literally your share of a company. Imagine a company worth R100 000. You want to invest in that company, but you don’t have R100 000 to buy it, or maybe the sellers don’t want to sell all of the company. Buying shares in that company lets you own some of the company, instead of all of it.

How shares work

To make it possible for you to buy shares, the curren​t owners of the company would agree to break the company into, say, 10 000 shares, each worth R10. The value of the company remains at R100 000 (R10 share price x R10 000 shares), but you can now buy one share in the company at R10, or five shares at R50.​​

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