What Are Shares, and How Can You Get Them?
If you’ve ever heard people talking about the stock market, investing, or even dividends, you’ve probably come across the word “shares.” But what exactly are shares, and how can you own some? Let’s break it down in a way that’s easy to understand.
What Are Shares?
Shares, also known as stocks or equity, represent ownership in a company. When you buy a share, you are literally buying a small piece of that company.
Think of a company like a large cake. To make it easier to share, the cake is cut into smaller slices. Each slice represents a share. If you own one slice, you’re part of the company’s owners, and the more slices (shares) you own, the larger your ownership.
Why Do Companies Sell Shares?
Companies sell shares for one main reason: to raise money. Instead of borrowing from banks, companies invite the public to invest in them. In return, investors (like you) get ownership in the company.
This process is called going public and usually happens on a country’s stock exchange — for example, the Ghana Stock Exchange (GSE) in Ghana.
Why Should You Buy Shares?
Owning shares comes with several benefits:
- Profit Growth—If the company grows and makes more profit, the value of your shares can increase. You can later sell them at a higher price.
- Dividends—Some companies pay shareholders a portion of their profits regularly, called dividends. It’s like earning money while still keeping your shares.
- Ownership Rights—As a shareholder, you get the right to attend company meetings and vote on major decisions (if you own enough shares).
- Wealth Building – Shares are a proven way to build long-term wealth. Unlike keeping money in a savings account, investing in shares can give you higher returns over time.
How Can You Buy Shares?
Buying shares is not as complicated as many people think. Here’s a step-by-step guide:
- Open a Central Securities Depository (CSD) Account
In Ghana, every investor needs a CSD account to hold their shares electronically. It’s like a bank account, but instead of money, it stores your investments. - Choose a Licensed Stockbroker
You cannot buy shares directly; you need a stockbroker who is licensed by the Ghana Stock Exchange. The broker will act as your link to the stock market. - Deposit Funds Into Your Account
Decide how much you want to invest and deposit money into your brokerage account. - Place Your Order
Tell your broker the company you want to buy shares from and how many shares you want. They will process the order for you. - Start Owning Shares
Once your order is completed, the shares will reflect in your CSD account, and you officially become a part-owner of that company.
Things to Know Before Buying Shares
- Start Small: You don’t need thousands of cedis to begin. Start with what you can afford.
- Do Research: Not all companies perform the same. Learn about the company before investing.
- Think Long-Term: Shares are best for long-term wealth building. Don’t expect to get rich overnight.
- Diversify: Don’t put all your money into one company. Spread your investment across different companies to reduce risk.
Final Thoughts
Shares are one of the smartest ways to grow your money and build wealth for the future. By owning shares, you’re not just saving; you’re investing in businesses that have the potential to grow and make you money in the process.
So, if you’ve ever wondered, “What are shares, and how can I get them?” — now you know:
- Shares are pieces of a company.
- You can buy them through a licensed stockbroker and a CSD account.
- They give you a chance to earn money through dividends and price growth.
👉 Don’t wait until you have a huge sum. Start small, learn as you go, and grow your investment portfolio step by step.
