Investing in shares - not an investment choice to be taken lightly, but definitely worth including as an option in your financial planning education and financial portfolio!
Understanding share prices and the investment process of buying shares empowers you to take control of your financial education and ultimately your financial freedom.
Learning to save money and making the effort to understand online share trading and selling shares allows you to make an informed decision based on your financial knowledge.
Share trading - learn as much as you can; speak to qualified and credible financial planners; know your facts, the risks and the potential return on your investment - and then make an objective, informed and knowledgeable decision.
INVESTING IN SHARES
WHAT IT MEANS?
|Share price details listed in financial pages||Details the performance of the different indexes, of companies that have been listed and for investments like unit trusts.|
|Closing price||This tells you what the official closing price of the share was - in cents - at 3 pm on the day before.
(The difference between the closing prices explained above and the closing price of the day previous to it is normally shown as a percentage in cents)
|+ (plus)||Shows that the share price went up.|
|- (minus)||Shows that the share price went down.|
|- (dash)||Shows that no shares were traded.|
|High||This is the highest price that the share traded at on a particular day.|
|Low||This is the lowest price that the share traded at on a particular day.|
|YM%||This shows you the share's performance over the last twelve months as a percentage.|
|Day's volumes||Details how many shares were traded the day before.
If a lot of shares were traded the day before - the share is more active and liquid and easier to sell.
If a low volume of shares were traded the day before - the share is less active and liquid and therefore may be harder to sell.
|Dividend yield||This is an indication of how much a company pays per share in comparison to its share price.|
|PE (Price Earning Ratio of a share)||This gives you an indication if the share price is good value and gives you an idea of the share's growth potential in the future.|
Investing in shares - it may seem very confusing at first - but persevere.
Aim to be as knowledgeable and saving-wise as possible so that you know where your money is going.