Shares

Advantages and disadvantages

ADVANTAGES

A shareholder receives remuneration in the form of a dividend paid annually, half-yearly or quarterly.

The investor may realise a capital gain in the event of positive company performance and a rise in the share price.

A shareholder with voting rights may actively participate in the decisions taken at general meetings.

In principle, the total return potential of a share, consisting of a dividend and a capital gain, is higher than that of a bond.

DISADVANTAGES

A shareholder is exposed to the risk of share price fluctuations.

Investment in shares does not provide a stable and/or guaranteed income; income varies according to company performance and its dividend policy.