You may have heard people say they’ve bought shares. Or perhaps you've listened to conversations about the share market being “up” or "down". But what does it actually mean?

Shares can feel complex, but they don’t have to be. This is especially true now, with investing platforms like Pearler making access easier than ever.

More Australians are choosing shares to grow wealth or earn income over the long term. Some focus on individual companies, while others prefer exchange-traded funds (ETFs) .

This article breaks down what a share is, how it works, and how it compares to other investments like property. Whether you’re curious, cautious, or courageously taking your first step in investing, understanding shares can help you make more informed decisions.

What is a share?

A share is a unit of ownership in a company. When you own a share, you own part of that business. Shares are often called stocks, especially in the US, but both terms refer to the same thing.

Most companies that offer shares to the public are listed on a stock exchange. In Australia, that’s usually the Australian Securities Exchange (ASX) . In the US, it will be a North American exchange, like the New York Stock Exchange .

These companies are called "publicly traded" because anyone with a brokerage account can buy and sell their shares through the stock market . That’s the marketplace where investors buy and sell shares , often within seconds.

Each company has a set number of outstanding shares. This is the total number of shares currently held by all shareholders, including individuals and institutions. The combined value of all outstanding shares gives the company its market capitalisation . This figure helps investors compare the size of different companies when deciding what to invest in.

Every listed company is assigned a ticker symbol – a short code that identifies it on the exchange. For example, Commonwealth Bank trades under CBA.

In the past, investors received paper share certificates. Today, most share ownership is recorded digitally in your share registry or brokerage platform.

To sum up, owning shares means holding a stake in a publicly traded company. It’s that simple.

Why do people invest in shares?

Many people generally invest in shares with one of two potential goals in mind:

• Growth from capital gains . If the share price rises over time, your investment becomes more valuable.
• Income from dividends . Some companies share profits with shareholders by paying regular cash distributions.

Together, these returns can help build wealth over the long term – especially when dividends are reinvested .

This is where return on investment, or ROI, comes in. ROI measures how much you gain from an investment compared to what you put in. Shares often offer a higher potential ROI than savings accounts or term deposits . But at the same time, that potential comes with added risk. Share prices can rise and fall quickly. Companies don’t always perform as expected, and some don’t pay dividends at all.

That’s why many investors think about their investing horizon. The longer you plan to invest, the more time you have to ride out short-term market swings.

Shares can reward patience, but they’re not without uncertainty. As always, outcomes vary depending on timing, company performance, and market conditions.

How do shares compare to other investments, like property?

Shares and property are both popular ways to invest, but they work quite differently.

Shares

Shares are generally easier to access. You can buy and sell them quickly through an investing platform, often with just a few taps. This makes them more liquid than property.

They also usually come with lower entry costs. There’s no stamp duty, legal fees, or large deposit required. You can start with small amounts and still build a diversified portfolio .

As mentioned, shares can also offer strong return on investment, especially over time. But, again, they can be volatile. Because prices move daily, the value can go down as well as up.

Property

Property is a physical asset. Some people feel more comfortable investing in something they can see and touch.

But property typically requires a larger upfront commitment. A deposit , legal costs, inspections, and stamp duty all add up. Plus, there’s ongoing admin – things like maintenance, insurance, and strata or tenant management.

It’s also far less liquid. You can’t sell part of a house if you need quick cash. Selling takes time, and often money.

Property may suit a different investing horizon. Some people hold on to property for decades. Others see it as a way to build equity or generate rental income. Plenty of investors choose both. Shares and property can play different roles in a portfolio and can potentially help balance out risk.

Shares vs property

Here’s a quick comparison table you can come back to:

Feature	Shares	Property
Liquidity	High – easy to buy and sell	Low – takes time to buy or sell
Entry costs	Low – usually requires brokerage, but no stamp duty or legal fees	High – includes deposit and upfront fees
Diversification	Easy with small amounts	Harder – requires more capital
Admin	Minimal – handled through a platform	Ongoing – maintenance, strata, tenants
Volatility	Higher – prices can change daily	Comparatively lower – prices move more slowly (or are less obvious)
Tangibility	No – digital ownership	Yes – physical asset
Income potential	Dividends (if paid)	Rental income (if leased)
Common investing horizon	Medium- to long-term	Long-term

Please note this comparison is for informational purposes only and isn’t financial advice. Everyone’s situation is different, and investments carry risk. Consider your own goals, timeline, and circumstances before making any decisions.

Can I only buy shares in individual companies?

Not at all. While many investors buy shares in individual companies, it’s not the only option.

You can also invest in exchange-traded funds (ETFs). These are bundles of shares packaged into a single investment you can buy, just like a regular stock.

An ETF might hold hundreds of companies. With ETFs, instead of picking a single business, you’re investing in a broad mix. This approach has some clear potential benefits. You get instant diversification, which can help reduce risk if one company underperforms.

It also takes less effort. You don’t need to research every company yourself. The ETF does that for you by tracking a particular index , sector or theme. For example, some ETFs on the ASX track the ASX 200 , global tech companies, or sustainable businesses. You’ll find options that cover everything from banks to healthcare to clean energy.

Another potential perk is the fees. You’ll usually pay one brokerage fee when buying an ETF, rather than a separate fee for each company inside it.

That’s why ETFs appeal to both new investors and those with more experience. They offer a simple way to get broad exposure to the share market without picking winners. However, as with shares (and any investment), ETFs come with risk.

How can I invest in shares?

Investing in shares has become more accessible thanks to online platforms. Here’s a general outline of how to invest in shares :

• Open a brokerage account : Most investors start by signing up with an investing platform. This account gives you access to the stock market and lets you manage your investments.
• Choose what to invest in : You can invest in individual companies or in funds like ETFs. Both options are available through most shares platforms.
• Be aware of brokerage fees : A fee is usually charged when you buy or sell shares. This fee varies between platforms and may affect your total costs.
• Understand how trades are settled : When you place a trade, it usually takes two business days for the transfer to complete. This is known as the settlement period.
• Get to know your share account : Your share account records what you own and tracks past transactions. It works alongside your brokerage account to manage your holdings.
• Check how shares are held : Some platforms hold shares under your name, while others use a custodian structure. The setup may influence how ownership is recorded.
• Learn about IPOs : An initial public offering (IPO) is when a company lists on the stock exchange for the first time. It’s how new shares enter the market.

While investing is more accessible than ever, it still pays to understand what you’re buying. Whether it’s a company or a fund, take time to learn what’s behind the name.

Owning shares, your way

Shares aren’t just numbers on a screen or flashy ticker codes. They represent ownership in real companies doing real work in the world.

While the share market can feel fast-moving, investing doesn’t have to be. Speculation grabs headlines, but it’s consistency that tends to build results over time. At Pearler, we believe investing should be rewarding, simple, and even a little boring. In our view, that’s often where the magic happens – slowly, in the background.

Whether you’re curious about individual companies or exploring ETFs, you don’t need to rush. Take your time. Learn what works for you. Think long-term. Because investing in shares is about building something for tomorrow.