What is a stock? What is a share? How would one go about trading them?

[SilentBoob]

I have been given an amount per month to trade in stocks and shares.

I am very excited about this.

I also don't know my arse from my elbow in these matters.

How do I start? What do I need to know?

There are whole libraries devoted to how to invest on the stock market. :) A share (or stock, pretty much the same thing) means you own a small part of a company. The value of that share depends on all kinds of factors external and internal... company performance, economic conditions, etc.

If you're new to this I'd recommend a few things. Managed funds can be a good entry level into the stock market as this reduces the risk slightly. A lot of organisations offer those. Read around the subject ... recommend the www.thisismoney.co.uk website, for example.. get hold of some company reports and get familiar with balance sheets and ratios. I'd also suggest hunting down an on-line stock market simulator where you can practise trading and understand your attitude to risk. Finally... 'don't invest anything you can't afford to lose'. Good luck

Thank you Cog. helpful advice. will investigate your link.

God this is really difficult and complicated.

This is the first thing outside of The Mummy Zone I have done for 6 years and so far I just feel a bit thick.

It's actually not that difficult to trade stocks and shares. The tricky part is making money on the deal. That's why I said think about managed funds (or unit trusts) as an entry level until you get up to speed. The plus side of managed funds is that a professional is paid to analyse the market & make the decisions. The negative aspects are that there is no guarantee of a return and you will be charged a commission or admin fee on units purchased.... albeit lower than some brokers charge to trade individual stocks. I invest an amount per month into several funds with M&G and treat them as a 5 - 10 year investment. I have traded individual stocks in the past but only proved to myself that I'm no Warren Buffet :)

You could always have a chat with an independent financial advisor. See what they recommend for the amount of money you have to invest each month.

The motley fool has good idiot-proof advice on share trading and investment.
I have a FTSE All Share tracker fund for DS, it has low fees and is a good way to get exposure to the stock market with little risk.
Stock trading is a lot like gambling, low risk gives small returns, high risk could return lots or lose the lot. Get advice from an IFA to find out your attitude to risk.

Recommend Citywire for charts that I personally find easy to understand alongside sector and company reports.