How you could Income from shares make money from Share prices rise and fall depending on supply and demand. Interpretation equities of company news, economic data and information regarding the industry or competitor companies will all affect the number of buyers and sellers of a share at any point in time. Share prices change constantly and participants in the market will make different assessments of the value of the company. When a company is successful, the price of each share is expected to rise. When it’s less successful, the share price is expected to fall. If you sell shares at a higher price than you bought them, you should make a profit from them. Share prices rise and fall depending Income from dividends on supply and demand You don’t have to sell your shares to make money from them. As a shareholder, you are part-owner of the company you invest in. You can make money from shares if you sell them at a higher price than Sometimes companies choose to give shareholders a percentage of its profits at you paid for them intervals. If the company you invest in does this, you can earn an income through dividends. Dividends are a percentage of profits paid out by the company on a Dividends are another way of regular basis (usually quarterly) directly to its shareholders. making money from shares – this is a percentage of profits from When you’re thinking about investing in equities, you should find out if the company the company distributed to its or companies you’re considering pay out dividends and if so, how they’re paid. shareholders If you’ve invested in equities through a fund (where investors pool their money and a fund manager invests on their behalf), the dividends are paid to the fund. The fund may pass the dividends to its investors in the form of distributions. Before investing, you may wish to find out whether a fund makes distribution payments, and if so, how frequently. More on investing through funds later. As a shareholder, you are part-owner of the company you invest in. 4