Investing in shares is a global opportunity, covering hundreds of thousands of companies in every industry you can think of. While many shares are referred to as penny shares, with very low values usually less than a $1, these tend to be smaller or newer companies. More established businesses find their shares listed on regional exchanges that regulate share trading across the globe.
For instance, The London Stock Exchange is one of the world’s most famous, and controls share trading on all listed shares in the UK. In America, the New York Stock Exchange and NASDAQ, and
While it is possible to buy and sell shares from companies listed in all these exchanges wherever you are in the world, Australia does have its own index, the ASX, Australian Stock Exchange. Here 2,000 companies are listed with their shares freely traded every day. For many just starting out with share trading, analysis and research can be easier for locally registered companies along with the changing economic conditions, and for many Australians, that makes the shares listed on the ASX a good starting point.
However, with the vast majority of Australians never having invested in shares, the question is why is this kind of investment ignored? In fact, a recent survey showed that just 25% of Australian’s had bought shares, and the two biggest reasons for not doing so is the perceived cost and simply not knowing how.
These two factors are intrinsically linked, until recently, the ability to invest money in share purchases was restricted to clients of traditional stockbrokers. This approach both added to costs and created a perception of complexity to the general public. However, as with most countries today, Australians now have more options and importantly, vastly increased access to share investing via online brokers and managed accounts.
Online brokers offer a low-cost, simple service that allows Australian’s ability to buy and sell shares from home. For those who want to take personal control over their investment strategies, this is an excellent solution. The online broker has revolutionised share trading all over the world as a result.
Another option is the managed account. Here brokers take control of funds and invest them on behalf of the client, according to their preferences for short, medium or long-term results, the level of risk they prefer and so on. For those making the first entry into share investment, this can offer a practical way of taking advantage of the opportunities in the share market without having to have extensive knowledge at a personal level.
Today, there are numerous options for investing in shares in Australia, no matter whether you are looking for a hands-off approach via a managed account, or you want to take full control for yourself. Whether you restrict yourself to ASX shares or invest in companies from around the world, Australian share investors today have a great opportunity to grow their investment funds.
For the full breakdown of Investing in Shares check out our article: Investing in Shares
We welcome you to give our team a call to discuss your investment goals and objectives.
You can call Walker Capital Australia on +61 2 8076 2210, and we’ll see how we can help you achieve your investment goals.