All of you must be aware that trading in shares and the stock market is very dicey,
what with the regular ups and downs. But there are many benefits in investing
in shares. First of all, as it is a liquid asset you have access to your money
all the time unlike the money invested in properties. In Australia, daily 3.18
billion dollars are traded in shares. Almost 40% of Australians are shareholders.
What and who are the shares for?
Basically the various Companies in the market issue shares to the public in order
to raise money for an expansion or a takeover. By buying these shares, you become
a shareholder of the Company and have a right to voice your opinions in the running
of the Company in the Annual Meetings. You also have a share in their profits.
From professionals, business owners, retirees, professional traders and investors,
entrepreneurs, tradesmen, homemakers to self-managed super fund operators can
invest in shares. In short, once get a grip on trading in shares anyone can invest.
But you can trade in shares only through a stockbroker.
Different types of Shares...
The most popular and the common shares are the ordinary shares. For those newly
entering in the stock market, there are ordinary and preference shares that have
diverse properties. For the more experienced, there are derivatives like options
and warrants that are additionally diversified. The first time a Company offers
its shares, they are the IPO or Initial Public Offering. IPOs are also known as
floats in Australia.
Benefits of Investing in the Share Market...
By investing in shares, you can make money in the following ways;
-
Share's capital growth-this is the value of the share price which increases gradually over a period of time.
-
Dividends-they are the profits of the company you have bought shares in that are paid out to you generally twice a year. But all companies do not pay out dividends.
Factors affecting the Ups & Downs...
The Australian Stock Exchange or the ASX is after all like any other market place
that is affected by the demand and supply. More buyers, the price rises. However,
more sellers, the price falls. These are some of the factors that can affect the
stock market;
-General market sentiment
-Economic events
-Interest rates
-Movements on international markets, especially the Wall Street
-Company news
-Speculation and rumour
Info on Indexes...
An index shows the number of stocks listed; it consists of the securities that
are broadly classified as ASX S&P 50, 100, 200 and 300. This means that in S&P
50, the top 50 companies traded; in S&P 100, the top 100 companies traded in the
stock market and so on and so forth.
Online Trading...
Now days, shares can be bought and sold online also. If you are looking for Australian
stock tips click through to www.shareselect.com.au as the provide a regular updates and offer a free trial for new clients. Obviously you would want to track the stock market. This too can be done online.
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