What is share trading?
When you buy a share, you’re buying a small unit of ownership in a company. Trading shares as CFDs means you do not own the underlying, but you can still speculate on the price of that company. Therefore, before trading shares as CFDs, it’s really important to research both the company and the industry it’s in.
An added benefit of trading shares as CFDs is that you’ll still receive dividends. They represent your share of the company’s profits and are usually paid out twice a year. The amount you receive depends on how much the management distributes to shareholders, and how much is reinvested back into the business.
Share prices are affected by many factors, including supply and demand, the company’s earnings, and expectations of the company’s future performance (based on a wide variety of things such as industry legislation, the company’s management team and the health of the economy).
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