Learn how to invest

Investing means buying part of something, such as a company, in the hope that it becomes worth more. You share in the gains, and in the losses too. The lessons start from the very beginning and end with choosing a provider and a fund.

What is a share?

What is a share? It is an ownership stake in a company, so its gains and losses are partly yours.

Suppose a coffee shop cannot pay everyone. Who comes first: Orla, its lender, or Tobin, an owner?

Orla, the lender

The company owes Orla money. It must pay her before Tobin, though she may not get all she is owed.

Lenders are paid before shareholders, but they can still lose money.

A bond is a loan to a company or government. Its terms set interest and repayment dates.

Tobin, the owner

Tobin’s chance to gain from growth gives him no priority if the company fails. Debt comes before owners.

In bankruptcy, a company pays its shareholders before its bondholders.

Share
OwnershipAn owner of the company
Bond
LoanA lender to the company
TRUE

Bondholders lend to the company. Their claims come before those of shareholders, who may receive nothing.

FALSE

Bondholders lend to the company. Their claims come before those of shareholders, who may receive nothing.

A share gives ownership; a bond is a loan. The company must settle debts before owners receive what remains.

Ownership gives no priority over the company’s debts.

Suppose a coffee shop grows into a chain over several years and is then sold. Who receives more?

Orla’s loan
€16,000Agreed total repayment
Tobin’s stake
10%Of €2,400,000 after debt
Orla, who lent the shop €12,500

Orla’s loan earns the agreed €3,500 in interest, 28% over the life of the loan. Tobin’s 10% is an ownership stake, a share.

Tobin, who owns 10% of the shop

Tobin’s 10% is an ownership stake, a share. It brings him €240,000, 15 times Orla’s payment.

Growth can raise the owner’s payment without raising the lender’s agreed amount.

A share puts you in Tobin’s place, risk included. Companies may pay owners a dividend from profits, but it is never guaranteed.

All 16 lessons in 4 stages

How investments work

  1. What is a share?What changes when you own part of a business?
  2. Risk and returnWhat does a fall in value mean when you need the money?
  3. Inflation and purchasing powerWhat happens to your money when prices rise?
  4. Compound interestWhat happens when money stays invested for years?

The patient strategy

  1. Leaving investments aloneDoes more activity lead to better investment results?
  2. Global diversificationHow far does knowing a company help you judge the risk?
  3. Shares and bondsWhat changes when an investor lends to a company instead of owning part of it?
  4. Black swansHow can an investor prepare for a shock they cannot predict?

Timing and fees

  1. Can you time the market?If you sell before a fall, when will you buy back?
  2. The long bill of feesExplore annual fees, commissions and what a bank earns from the funds it suggests.
  3. Investing on autopilotKerensa invests every payday and returns to 70% in shares each January. Which choices are still hers?

From paycheck to investing

  1. Reading a payslipFollow the deductions, then compare a payslip and tax notice for the same month.
  2. What is an ETF?What sits behind an ETF’s name, and what can Maelor’s cash buy?
  3. Choosing a providerWhat should Amara check before trusting a provider with her investments?
  4. The first orderMateo prepares a purchase and follows what happens after he sends the order.
  5. Which share class?How does Hana choose between versions of one fund?

At the end there is a final test.

Practise with virtual money

W.I.L.L. explains each idea when you meet it. Along the way you earn gems and achievements, and your investor level climbs. Each week you compete in a league, and each month there is a cup where you invest virtual money in shares at real prices, delayed by 15 minutes.

Who is behind it

Written by Christoffer Thimsen, PhD in finance, Aarhus University. Reviewed by Sander Schwenk-Nebbe, PhD in finance, Aarhus University. Last reviewed 18 October 2026.

How a lesson is made

Every number in the lessons is either calculated or taken from a dated source. A lesson opens only after a person has reviewed it, and any change is reviewed again.

We teach you about money, but we never tell you what to buy. We don't sell investments or earn anything from your choices.

Sources

  • Investor.gov: Company bankruptcyIn US company bankruptcy, debts are paid before shareholders receive any remaining money.
  • Investor.gov: Bond agreementsA bond lends money to an issuer, such as a company or government, on agreed interest and repayment terms.
  • Investor.gov: Owning sharesA share represents ownership. Shareholders may receive dividends and can gain or lose on their investment.