To the beginner, the stock market can seem daunting. However, considering the dismal returns you get from building societies and banks, investing in the New Zealand stock market provides you with an opportunity to guard yourself against rising inflation and achieving greater returns compared to property, bonds, and cash. Read on to learn more about the stock market and how to start. A stock (sometimes called a share) offers you a part of the company. When you purchase a stock, you literally own part of that company. This offers you two money making sources: • You can receive a dividend, which is a share of the annual profit the company has generated. • The other is through capital gains. When the price of your stocks goes up due to demand and supply, you can sell your portion for a profit, but you have to take into account inflation. You can purchase your stocks via brokers. These brokers are also called advisers. You have the option of working through online dealing websites like those offered by the ANZ and ASB banks. Banks and brokers make their money from a set percentage as you make the purchase. Investing through banks or brokers also offers you access to valuable information that will help you make it through your venture. Upon the advice of the experts, choose 3 cheap stocks to get you started on a good note. Once you are familiar with the New Zealand stock market and how to start, you can move on to buying stocks across 10 or 20 companies. This way, if one of the companies experiences a bad year, you can make a recovery from the others.
financebychris 