Share Trading Explained
GJ PRIVATE WEALTH, Financial Planners in Sutherland can assist you with share trading.
Share trading involves buying and selling a ‘share’ in the ownership of a company listed on a stock exchange. These ‘shares’ are also known as equities or stocks.
Owning a share in a company entitles you to a share in the company’s profits (known as a dividend).
The value of your share will also go up and down in line with supply and demand for that stock. This means the value of the shares you own may potentially increase or decrease in value.
Investing in shares is a common investment choice for many Australians. It’s easy to see why when you consider the benefits:
- Equities are usually easily accessible and can cater to a wide range of investment strategies
- You don’t need much money to get started. In fact you can start your own portfolio from as little as $500.
- Transaction costs can be lower than other investments such as property
- You can earn income from dividends paid or reinvest them to purchase more shares in that stock
- Whether you’re looking for a regular income or long-term growth, there may be shares to suit you