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Shares Made Simple: A beginner's guide to the stock market by Rodney Hobson

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Chapter 6: The Market Place

The stock market, like any market, is where you buy and sell new and second hand goods, in this case shares in a company. Companies willingly pay a fee for a stock market listing because it is easier to persuade investors to buy shares if they can be sold easily at a later date.

Shares do not have to be traded on a stock market. Supposing you have a bright idea but you do not have the cash needed to make and market the wonderful gizmo that you have invented. You ask your Grandma, or Auntie Maisie, or the neighbours, anyone who believes in you to put up the cash in return for a stake in the rewards when your great invention starts to sell like hot cakes.

Alas, Grandma dies, you fall out with Auntie Maisie and your ...

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