In order to participate in the success of your favorite brands!
Once you learn how to buy shares through a “broker” (see below), you’ll be able to access two types of profit over time:
1) Dividends: each year (at a set date, which we will give you), many companies distribute part of their profits. As a joint owner of these companies, you receive a “dividend per share” which is multiplied by the number of shares that you own.
2) Capital gains: the aim of a stock market investor is to resell his or her shares for more than their purchase price. This results in “capital gain.” Conversely (reselling at a price below the acquisition price), the result is called a “capital loss.”
Example and rate of return: – over the year, you’ve bought 1,000 euros worth of shares, reselling them for 1,095 euros – in so doing, you have earned dividends amounting to 42 euros – your broker will charge 6.50 euros for these purchase and sale transactions, for example – so the net rate of return for your investment amounts to 13.05% (95 euros + 42 euros – 6.50 euros) / 1,000 euros, in other words, 130.50 euros. For the record, a French Livret A savings account currently yields only 0.75% a year!
What is a broker?
To buy or sell company shares, you first need to establish a relationship with a stockbroker and open a dedicated account. We have selected online brokers who are amongst the best on the market. They do not charge fees for opening or managing an account. Effectively, this is how it works:
1) You open an online account with a broker.
2) From your customer area, you place an order for x shares at a rate of y/share.
3) The broker executes your order on the stock market.