Let us learn the super basic of Investing:
A stock exchange acts as a market where stock buyers connect with stock sellers. Stocks can be bought and sold on several exchanges. In Malaysia we have Bursa Malaysia. In the US, there is the New York Stock Exchange (NYSE).
Stocks here means equities.
The stocks first become available on an exchange after a company puts its shares on the exchange; this is initial public offering (IPO). For example, Mr DIY Group Bhd conducted its IPO in Oct 2020, putting 941.49 million shares on Bursa Malaysia.
You, as an investor, buy those shares. And then another person offers to buy those shares at a higher amount. This difference is your profit (but if you sell it a lower price, that is your loss).
When you buy the shares, you actually become a small owner of Mr DIY😊
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Important Information
The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.
The information on this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.