Investing In Shares

Investing in Shares for Beginners: A How-To Guide

Do you currently have a significant amount of savings in the bank? Are you trying to think of a way to get your money to work for you instead of just letting it sit in the bank? If you answered yes to these questions then you might want to consider investing in shares. We often hear economists, stock brokers and finance experts talking about investment. Investment seems to be a proven way of making money. The question is: Can a regular Joe join the world of investment?  Investing in shares for beginners need not be a complex topic. Here’s a how-to guide to help you get started.

Shares vs. Stocks

Let’s discuss the difference between shares and stocks first—or if there is a difference in the first place. The terms “shares” and “stocks” are actually being used interchangeably in the investing world. Both terms refer to certificates of ownership. The difference lies in the company or companies in question. The term “shares” usually refer to a specific company. If you are talking about ownership certificates in general then you would likely use the term “stocks”.

Different Kinds of Investment

As a beginner, one of the first things you need to do is to familiarize yourself with the different kinds of investment opportunities. This will help you determine the best type of investment that suits your financial goals. Basically, when you put your money in any situation that can earn you more money, you are already investing. This is essentially the underlying principle behind all types of investment. Even the simple practice of putting your savings in a high-interest yielding bank account is already considered as an investment. Here are some types of investment that you should look into.

  • Bonds – Financial experts like to explain bonds by likening them to I.O.U’s. When you invest in bonds, you are basically lending money to a government, a company or any other entity. Your money will then garner interest before being returned to you.
  • Stocks and Shares – As mentioned earlier, investing in stocks and shares means owning a part of a company or multiple companies. As a shareholder, you are entitled to your portion of the company’s profits which is usually given in the form of dividends.  Likewise, you are also involved in the decisions regarding the company’s operations.
  • Real Estate – When you purchase land or property in order to capitalize it then you are investing in real estate. Renting out your property to tenants is a common form of real estate investment. Others buy land for the increased value it generates over the years.

Investing in shares is a great way to make your money grow and ensure your financial security. Explore this site if you want to learn more about investing or if you want to connect with some of Australia’s premiere stock investment companies.

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