What is a share?
A share is a part ownership of a company. Shares represent a claim on the company’s assets and earnings. Shares are also referred to as ‘stock’ or ‘equity’.

Benefits of investing in shares
Imagine receiving a cheque every six months from a company you own but do not operate or work for. Imagine the possibility of selling your shares for a premium at your convenience. These are some of the benefits of owning shares in a company.

You can receive dividends on shares you own. In addition, share prices usually rise (appreciate) over time. This is called capital appreciation. If for instance you bought shares in Zambeef on the 14th of February 2003 at K671 per share, your shares would have appreciated to K5, 450 per share at 15th October, 2008.

The distinction between the primary market and the secondary market
The primary market is where securities are created through an Initial Public Offering (IPO).

Companies wishing to raise money for growth, expansion or other business plans come to the primary market and offer shares in their companies in return for a premium.
The secondary market is where previously issued securities are traded without the involvement of the issuing companies. The secondary market is what people are usually referring to when they talk about the “stock market”.