Investing with shares has many advantages over many other forms of investment, this is because shares carry a high degree of liquidity that surpasses that of properties and also offers fast and ready access to your money whenever you need it. There are currently over 1200 companies listed on the stock market, with substantial stocks up for sale. These companies represent diverse sectors, providing you with sufficient match for your investment needs.

Investing with shares in a company gives you an opportunity to own part of it, which means you become a partial owner together with other shareholders. Many public listed companies issue shares to the investing public for various reasons, some of which are to raise funds for growth, expansion or a merger.

Almost 40 percent of Aussies hold shareholders certificates, most of these shareholders own stocks in companies such as Telstra and more. When you become a company’s shareholder, you’re granted the rights of say in how the company is run and can exercise this right in the company’s annual general meetings, you’re also entitle to a share in it’s profits.

You can purchase and alternatively sell shares in listed companies. Such companies are found on the Stock exchange. Share trading is done in the stock exchange via stock brokers. To trade your shares, you can either phone in your order to your stockbroker or trade with them via the internet. Floating is a term used when a company is listing for the first time. In such a case, you can submit your application to purchase shares by filling the share purchase form in the listing company’s brochures.  The new shares are sold to the public at a set price. Once the company lists, its shares can only be traded through a broker.

Shares come in various types, some of which are: ordinary shares, preference shares, partly paid shares and options. Investors with more experience can go for derivatives like options and warrants to further diversify their investment portfolio. Payments made to shareholders by companies from accrued profits are referred to as dividends. Dividends are paid biannually. Some companies prefer to plow back larger portions of their profits into creating more business than paying it out to investors as dividends.

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