The holder of the share is eligible for a percentage of any profits the company makes since a Share in a company is a unit of ownership. Let’s say you had a share issue of 10,000 shares and you owned 1000 of these, then you would therefore own 10% of that company. This entitles you to 10% of any profits, that are declared by the company and are payable as dividends.
There are tow different types of shares. We distinguish between Common Shares and Preferred Shares. As a holder of Preferred Shares you have first access to any corporate assets in the event the company faces any financial difficulties. This type of shares is also known as non-voting, which means that the holders of Preferred Shares have no voting rights and subsequently no say in the running of the company.
With the introduction and rise in popularity of CFD trading, a large number of traders are moving away from traditional share trading and prefer the CFD alternative even though trading with shares has been the favourite investment for traders for many years. One of the reasons is the use of leverage in CFD trading, which has significant advantages to trading shares as CFDs over traditional share ownership. Leverage can largely increase trading results, but it can largely increase losses as well. All traders using leverage with certain asset types should therefore always act with caution.
The prices of shares depend on various factors, including supply and demand, company earnings, market news, particularly analyst expectations and performance expectations (one example would be Apple releasing a new iPhone – a common and reasonable expectation would be a rise in the price of Apple stock).
DUALIX traders are offered CFDs on a large number of the most highly traded Blue Chip stocks from markets from all over the world. Dualix clients can trade shares as CFDs on MetaTrader 4 with all the advantages of the advanced trading tools available on the platform. MT4 is available for download as a desktop version, browser-based online-version and a version for mobile devices.