What is Share Market
A share market is a place where shares (pieces of ownership in businesses) are bought and sold. It usually refers to the stock market, where stocks are traded. The share market can be used to measure the performance of a whole economy or particular sectors of it.
1. Plan your investment
Before investing in the share market, it is important to have a clear investment plan. This means setting out your investment goals and objectives, and how you plan to achieve them. It also involves research into which shares or investments are likely to help you reach your goals.
2. Decide how much to invest
Once you have a clear investment plan, you need to decide how much money you want to invest in the share market. You should only invest an amount that you can afford to lose without affecting your lifestyle. Remember, the share market can be volatile and shares can go up and down in value.
3. Consider using a broker
If you are new to investing in the share market, you may want to consider using a broker. A broker can provide guidance on which shares or investments may be suitable for you, based on your investment goals and objectives. They can also provide advice on how to buy and sell shares, and manage your portfolio of investments. However, brokers will charge fees for their services, so it is important to compare different brokers before choosing one. The Australian Securities and Investments Commission (ASIC) provides guidance on choosing a broker. ASIC’s MoneySmart website also provides information on how to start investing.
If you are comfortable making your own investment decisions, you can buy shares directly through a share trading account with a stockbroker. You will need to open a share trading account with a stockbroker and deposit money into the account before you can buy shares. ASIC’s MoneySmart website provides information on how to open a share trading account. You can also buy shares in funds, which are a collection of different investments, including shares, managed by a fund manager. Funds can provide diversification, which means your investment is spread across a range of shares and other investments. This can help to reduce risk, as the value of each share or investment in the fund will not all move in the same direction at the same time. ASIC’s MoneySmart website provides information on how to invest in funds.