What are shares and how do I invest in them?

Shares represent a stake in the capital of a company. When you buy shares, you become a shareholder and acquire a certain number of rights over the company's profits and participation in its management.

Investing in shares can be an attractive way to invest your money, and here are some basic steps you can take to get started:

Learn the basics: Before investing, it will be useful to understand basic concepts such as dividends, capitalization, P/E (price/earnings) and others. This will help you make more informed decisions.

Determine your investment horizon: Decide how long you are willing to keep your investment in a stock. This is important for choosing the right type of stock and investment strategy.

Choose the right broker: Open a brokerage account with a reliable broker. Research the broker's commissions, services and reputation before opening an account.

Research the companies: Research the companies you plan to invest in. Assess their financial situation, growth prospects, competitiveness in the market and other factors.

Develop a diversified portfolio: Avoid concentrating your investments in a single company. Create a diversified portfolio that includes shares from different companies and sectors.

Choosing a strategy: Decide on an investment strategy. This can be a long-term investment, where you hold on to shares for many years, or a short-term investment, where you buy and sell shares for short-term gains.

Follow market trends: Keep abreast of developments in the financial markets. Follow news and analysis that could affect share prices.

Gradually increase your investments: If you're a beginner, start with small amounts and gradually increase your investments as you gain experience.

Learning from mistakes: Investing in shares can be a lesson in risk management. If something goes wrong, learn the lessons and adapt your strategy.

Adopt a long-term approach: Investing in shares for the long term often produces the best results. Don't panic about short-term price fluctuations.

It is advisable to consult a financial advisor before deciding to invest in shares, especially if you have little experience in investments.