Stocks and Shares - Answers

1. Many companies distribute a portion of their profits to shareholders in the form of dividends.

2. A diverse portfolio helps reduce the risk of losing all your money on one investment.

3. Investors use brokers to buy and sell stocks on behalf of clients.

4. The stock market is a place where stocks and other securities are traded.

5. Purchasing shares in a company means owning a part of that company.

6. Long-term investment strategies are often safer than short-term trading.

7. Investors hope to sell their stocks at a higher price to make a profit.

8. Initial capital is required to purchase shares and start investing.