If you find yourself in possession of additional funds, you may be looking for a way to put that money to good use. There are many valid ways in which you might choose to use them – be it for a new asset, to pay off a debt, or to save further.
If you’re looking for a way to grow that amount though, you may have been looking into investing. One of the most common ways to do this is through the buying and selling of shares. This can be done through an online broking service or a full-service broker.
Purchasing shares (be it through stocks, securities or equities) grants you part-ownership of a company. The more shares you own, the greater your stake as a shareholder.
There are three main ways that shares can be bought:
- Buy them via a prospectus or through a broker
- Purchase them through an employee share scheme
- Invest indirectly through a managed fund.
Having shares can grant you dividends and other benefits if they perform well.
Purchasing the right shares can help you grow your wealth. The best way to ensure that is to conduct your own research on economic and market changes that could affect the areas and sectors your shares reside in.
Some of the best sources of information for shares research include:
- the Reserve Bank of Australia’s quarterly Statement on Monetary Policy — for commentary on the Australian economy
- business and finance sections of reputable websites, magazines and newspapers — for new economic information
- research departments of banks and stockbrokers — for forecasts about economic conditions
As with all investments, there is risk involved. Take your time before diving straight into things. Be clear about the financial goals that you want to achieve, and seek out financial advice from professionals if you require it.