Buying shares can be risky. If a share price reduces then the value of your investment reduces as well. However shares have historically provided better returns over the long run than the other main asset classes: property, cash or bonds. Holding shares in just one company is very high risk.
In fact, it is considered as one of the best long-term investments in the financial market. Like for example, if you want to double your money in a year, buying shares would not be a good idea, but, it can be a rewarding investment if you want to invest for like 10 or 20 years.
The most common way to buy and sell shares is on the share market using a broker or broking service and you buy them in the stock market.
The stock market (a.k.a. share market or stock exchange) is where people buy and sell shares in listed companies. A stockbroker places all trades electronically and share settlement (ownership change) occurs two business days after the transaction.
The Australian Securities Exchange (ASX) is the largest in Australia and contains over 2,000 companies with a market capitalization over $2 trillion (AUD).
The benefits of investing in shares are: Potential capital gains from owning an asset that can grow in value over time. Potential income from dividends. Lower tax rates on long-term capital gains.
We hope the above has provided you some information about share investment aspects, which will be considered in your overall Quantum Wealth Plan.
Exchanged Traded Funds document is available below:Download
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