This guide could get you started and help you decide if share trading is right for you. Each share represents an equal portion of the company's total capital — the more shares you own, the greater the portion of ownership you have. The stock exchange is where shares are publicly listed and traded. The New Zealand stock exchange is the NZX and the Australian stock exchange is the ASX.

Some brokers offer advice, while others, like ASB Securities , offer online share trading services for investors who prefer to make their own share trading decisions. Share prices are influenced by things like the performance of a company, general economic conditions, and what the market buyers and sellers think the shares are worth. News about a particular company may be evaluated by investors, and how they react could cause share prices to suddenly go up or down.

You may also receive financial reports and get voting rights on shareholder decisions. Once you own shares, you can generally sell them at any time. Unlike a bank deposit, money invested in shares has the potential to increase in value and protect your investment against inflation.

Having said that, shares can go down in value too. That's why most people only invest in shares as part of a diversified portfolio. Some people also like to take advantage of the fluctuations in share prices by buying and selling in the short term, with the aim of making a financial gain.

People buy shares with the aim of making capital gains. When you buy shares for one price, then sell them at a higher price, you make capital gains. Likewise, you could make a capital loss if you sold your shares for a lower price than you bought them for. This is a payment a company makes to its shareholders.

Often the dividend is a share of the company's profits, but sometimes it can be paid for other reasons. Some companies pay dividends regularly say once a year or on an ad-hoc basis, while some companies don't pay dividends at all.

How do I Invest in New Zealand Stocks? | Finance - Zacks

If you're looking for regular income from your investment, then this is something you need to consider when choosing which shares to invest in. ASB Securities Limited is a NZX Firm. ASB Securities terms and conditions apply. The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.

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Shares can be a good way to grow wealth over time, as part of a wider investment strategy. There are two main reasons people choose to invest in shares over the long term. Firstly, shares have the potential to increase in capital value over time. And secondly, shares can sometimes offer an income in the form of dividends.

There are two key ways you may be able to make money from shares: Like any investment, investing in shares has its risks. The two main types of risks are: This is when the share price goes up and down. This is the risk that your shares will be worth nothing, for example if the company goes out of business. Ways to manage risk when investing in shares Diversify your share holdings. You can spread your risk by investing in a variety of shares from different companies and industries.

This means if one industry or company goes down, you may still have other shares to balance out the losses. You can spread your risk further by investing in more than just shares. Focus on the long term. Historically, money invested in shares has tended to hold or grow in value faster than inflation. ASB Securities Online Share Trading gives you access to a range of reports and research tools to help you make informed choices. Join now Ready to join ASB Securities?

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Call us We're available Monday to Friday, 7am to 6pm. How to decide what shares to buy. Markets you can trade through ASB Securities. Understanding different types of orders. Placing your first online order. Join ASB Securities online.