Shares represent part ownership in a company. Investing money in shares of a particular company is buying a share of the company’s income and growth.

Shares can be volatile in their price fluctuations.

Shares can appear to be more volatile than property due to the fact that you can watch the prices of shares move on a daily basis.

There are different types of investors who invest in the share market. Some invest for the short term (these can be referred to as share traders) and some invest for the long term.

Australian shares are a relatively liquid investment; i.e. you can sell your shares and receive the proceeds within a number of days. However, this may not always be the case, particularly when a company may be in crisis and there is a trading freeze in place.

Sometimes, there may be only a limited number of buyers so you might be forced to accept a lower price if you need to sell your shares quickly.