Stocks

When you invest in stocks, you buy part of a company. The value of your investment depends on the company’s results and on the price other investors are willing to pay for its shares. Before buying, it is important to understand what the company does, how it makes money and what risk you take.

What is a share?

A share is a security that gives its owner part ownership of a company. By buying shares you become a shareholder. Depending on the share class, you may be entitled to vote at the general meeting and receive dividends if the company decides to pay them.

Companies issue shares to raise funds for operations and growth. Already issued shares are usually traded between investors on the exchange: some sell, others buy.

How can you earn from stocks?

An investment can generate a return in two ways: when the share price rises or when the company pays dividends.

For example, if you bought 10 shares at EUR 20 for EUR 200 and later sold them at EUR 25, you would make a EUR 50 profit before commissions and taxes. If the price fell to EUR 15, selling the same shares would result in a EUR 50 loss. This is only a calculation example.

Dividends are payments made by a company to its shareholders. Not all companies pay them, and the amount may change. Dividends do not guarantee a positive total return, as the share price may fall.

How do you buy stocks?

1. Open an investment account. Review the service terms, fees and trading permissions.
2. Choose the amount to invest. Consider whether you may need this money soon for everyday expenses or unexpected needs.
3. Find the stock you want. In the Myriad capital app or Pro platform, search by company name, symbol or ISIN. The list on this page helps you explore the choice.
4. Check the order details. Make sure you have selected the right share class, currency, exchange and quantity. Review the price and expected commission.
5. Place the order and check its status. Shares are acquired once the order is executed. An order may remain unexecuted or be only partially executed.

What to consider when choosing a company?

Start with its business: what products or services it sells, who its customers and main competitors are. Review its financial statements, revenue, profit, debt and management plans. Think about what could worsen its results.

A well-known name or a recent price rise does not by itself make an investment suitable. A low price per share does not mean the company is cheaply valued. The price should be assessed together with the company’s financial results and prospects.

Exchange and currency: why do they matter?

The same company’s shares may be listed on different exchanges, with different trading currencies, hours, commissions and liquidity. Before comparing, check that it is the same share class and ISIN.

When investing in another currency, your result in euros also depends on the exchange rate. Share price and exchange rate movements may reinforce or offset each other.

Market and limit orders

Market order is executed at the prices available at that moment. The final price may differ from the last price shown on screen.

With a limit order you set the maximum price you are willing to pay when buying, or the minimum price you accept when selling. The order may be executed at this or a better price. If no matching offer appears, it may remain unexecuted.

What are the risks of investing in stocks?

A share price may fall due to weaker company results or a general market downturn. If a company goes bankrupt, shareholders may lose the entire amount invested. Less frequently traded shares may be harder to sell in the desired quantity at an acceptable price.

Spreading money across companies, sectors and markets can reduce dependence on a single investment, but it does not remove the risk of a market-wide fall. Consider how stocks fit with your other investments, financial obligations and planned investment horizon.

How do stocks differ from equity ETFs?

When you buy a single company’s share, you invest in one business. An equity ETF is an exchange-traded fund that can hold shares of many companies. A broad-market ETF helps spread your investment across more companies, but its value also fluctuates.

When assessing an ETF, check what it invests in. A fund focused on one sector or a narrow theme may depend heavily on that part of the market. Also consider the fund’s costs and trading terms.