Buying shares doesn't have to be complicated and the latest internet services have driven down costs and made it so much easier to track you portfolio online.
Shares are one of the four main investment types, along with cash, bonds and property. There is an associated risk with investing in shares, but they can offer the highest returns. Buying shares in larger, established companies can pay you dividends but the growth of the stock price might not be as rapid, however the income gained from dividends can be reinvested to grow capital. Diversifying is a smart way to invest since you are spreading out the risk that you take when buying shares of a company.
In order to begin the process of buying and selling shares that you can own yourself, there are a number of ways to go about doing this. You can use a stockbroker, an online broker or a financial advisor, who will however ultimately have to go through a stockbroker.
This is a speciality of ours as penny shares enable low cost investment at entry levels that many people can afford. The format allows you to test the water and there can be significant gains to be had, although it can be high risk.
Penny shares are common shares of small public companies that trade at low prices per share, generally less than £1 per share in the UK. These stocks can present a high risk for investors as they are volatile, they can also be hard to sell, if no one wants to buy them and you can find yourself stuck with the shares. They trade on the Alternative Investment Market and the Plus Quoted Market, as they aren't listed on the London Stock Exchange. There can sometimes be less information available, so it can potentially be difficult to predict how well the business will perform and hence assess what the share price will do.
Copyright 2014 Momentum Trader