When you buy equities (also known as shares) you become a shareholder in a company and the owner of a small part of it. If the company does well you’ll benefit from any increases in the share price and you could also get an income from the profits if the company pays dividends. But if the company performs badly or the stock markets fall in general you could lose your money.

Find out more about the different types of investments in our How to choose and manage your own investments guide.

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