Investing In Shares & Stock Trading
Shares are also known as stocks, equities, or securities and are historically traded through the NZX stock exchange via stock brokers – however, a number of popular new platforms like Sharesies are making stock trading more accessible for everyday Kiwis.
Investing in shares can be a lucrative financial strategy and, if you apply it effectively, could generate enough wealth to see you through to retirement and beyond. But high rewards come at the expense of high risk as the stock market is notoriously sensitive to shocks.
A share is a small unit of ownership in a company. Investing in shares means you are buying a piece of a company. Each share is an equal portion of the company’s total capital, so the more you own, the greater the proportion of the company you own.
MyFuture’s Qualified Financial Advisers have investment experience in all types of assets, including expertise in share investing. If you’re thinking of your investment options and want to discuss how shares fit into your financial plans, give us a call.
Investing In Shares In New Zealand
The New Zealand stock exchange is called the NZX and is where all NZ company shares are listed and traded. Each company share has a bid (a buy price) and an ask (a sell price).
Share prices are influenced by the performance of a company, economic conditions, and any market fluctuations. Knowing when to utilise share investments as a part of a larger financial plan means your money has the potential to increase in value and protect against inflation more effectively than bank deposits.
The NZX has outpaced international markets over the past decade and is an excellent choice for investing. When making a financial plan, NZ stocks can be an integral part of reaching your personal investment goals.
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How Do I Trade Stocks In NZ?
If you want to trade stocks in New Zealand, including buying and selling your shares, you would historically need to place an order through a stock broker – a stock broker is licensed to give investors access to the stock exchange. Some stock brokers will offer advice as well as their services unless you choose to make your own decisions on how you trade your shares.
These days, a number of newer technology-based platforms like Sharesies and Hatch are emerging as popular options, as they have been purposefully designed to allow everyday Kiwis to invest small amounts of money into various stocks.
The direct to consumer options come with convenient low-fee trading platforms, but don’t provide guidance on the right trades to make.
At MyFuture, we consider your share investing options as part of your longer term financial goals. Let our Qualified Financial Advisers explore your stock trading options during a FREE no obligation Discovery Session today.
See how investing in shares can fit into a larger financial plan to meet your short, medium, and long term financial goals.
What To Know Before Buying Shares?
Before you buy shares of a company or fund, you need a way to buy shares – you can either do this via a broker who is properly licensed or a technology platform like Sharesies or Hatch. It’s important to evaluate a company or fund’s performance over time, as well as their financial position before deciding to buy their shares.
Read any news articles pertaining to their performance or activities and learn how to read and interpret financial statements. When you understand the market cycles and are ready to take the dive, make sure you’re making the most of your investment options.
That’s where we do the hard work so you don’t have to do the guesswork.
MyFuture’s experienced Qualified Financial Advisers have useful insights and proven effective strategies to improve your financial well-being and grow your assets. Contact us for your FREE Discovery Session today.