When you’re starting out in share trading, it helps to know exactly what a share is and how it works. The good news is, it’s probably a lot less complicated than you think. This guide could get you started and help you decide if share trading is right for you.
Shares can be a good way to grow wealth over time, as part of a wider investment strategy.
There are two main reasons people choose to invest in shares over the long term.
Unlike a bank deposit, money invested in shares has the potential to increase in value and protect your investment against inflation.
Having said that, shares can go down in value too. That's why most people only invest in shares as part of a diversified portfolio.
Some people also like to take advantage of the fluctuations in share prices by buying and selling in the short term, with the aim of making a financial gain.
Like any investment, investing in shares has its risks. The two main types of risks are:
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ASB Securities Limited is a NZX Firm. ASB Securities terms and conditions apply. The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.