Local & global

EQUITIES - SHARES

Australia is believed to have the world’s highest, per-capita, shares ownership. When compared to other traditional forms of investment, shares have, over the long-term, shown to provide the best overall performance (surpassing property, cash and fixed interest).

Furthermore; investing in shares requires a relatively low outlay (when compared to property, for example) and most shares are very liquid- meaning that you can quickly and easily dispose of a portion of your portfolio if you wanted to either lock in some profit or just access some cash.

Shares are highly favoured amongst long-term investors. Particularly those who wish to take a passive investment approach and not overly concern themselves with short to medium-term market developments and price fluctuations.

For many years, buying and selling shares on a short to medium-term basis (trading) was also very popular. However, due to technological advancements, lower trading costs and leverage- most traders now prefer to use derivatives (particularly CFDs) to attempt to profit from share-price movements.

Key considerations:

  • Outright asset purchase (no leverage) means no financing costs
  • Receipt of share dividend payments
  • Preferred instrument of long term investors with a bullish (positive) view of the market
  • Relatively high brokerage costs
  • Relatively safe (no leverage), with lower profit potential
  • Short-selling (profiting from a falling market) of physical shares is restricted

Buying shares/equities/security/stocks (different terms for the same thing), as the name implies, is simply buying a share of a particular company.

As such- you are entitled to receive a share in that company’s earning (dividends) which is usually paid twice per year. Once as a smaller interim dividend and again as a final year-end dividend.

All equity derivatives are based (derived) upon the price-movements of the underlying shares, although some follow their prices directly (such as CFDs), while other are their own markets and trade at their own prices – as determined by the buyers and sellers of the actual derivatives themselves – this being case with futures and options.

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” – Buckminster Fuller

This website is owned and operated by Investor Unity Pty Ltd (ABN: 90 160 624 331). Any advice included in this website or correspondence is general advice only and is based solely on consideration of the investment or trading merits of the financial products alone, without taking into account the investment objectives, financial situation or particular needs (i.e. financial circumstances) of any particular person. In addition to its internal services, Investor Unity is compensated by brokers and other third parties by way of referral/affiliate and/or general partnership arrangements, via its websites and other communications.

Investor Unity is genuinely interested in your long-term trading & investment success. We advise you to take all necessary steps to ensure you have a good understanding of the products & services you’re considering investing in – particularly if they involve leverage. While Investor Unity takes every care to ensure that we only deal with the highest quality services, from throughout the industry, past performance is not a guarantee of future performance. Other risks are also invloved, some of which are listed at www.iu.com.au/risk, which should be read. Before making an investment or trading decision based on the general advice, the recipient should carefully consider the appropriateness of the advice in light their financial circumstances and should carefully review the PDS of the relevant financial product as provided by your investment broker. Past results are not a guarantee of future performance. Please contact us, to discuss any questions or concerns you may have- we are here to help.

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