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Get Started in Shares by Glen Arnold

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Business is business, regardless of scale

Imagine that you own a corner shop business in partnership with others. The way you evaluate the viability and valuation of that business is exactly the same way that you would evaluate a company on the stock market. The fundamentals are the same; and those fundamentals are the main drivers of share prices.

So what do you think about when evaluating your corner shop? I suggest that your primary concern will be the flow of income you will receive. As I stated in Chapter 3, this income can come in two forms (leaving aside perks): first, dividends, and second, capital gains.

Now think about where capital gains come from. It is from other investors being willing to pay you more for your shares than you paid, ...

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