New To Investing?
Whether you've traded stocks before or you're a complete beginner, here you will find everything you need to begin your investing journey.
Why Should I Invest?
You have two options; firstly, to leave your money in a bank account, which will generate a negative return over time due to inflation (the steady rise in cost of everyday goods and services which means that your money - whilst sat in a non-interest bearing account - reduces in value overtime). Or option two, you put your money to work by buying a share of a productive business that will generate positive returns. These positive returns compounded over time have a significant ability to generate wealth.
What are stocks and shares?
Stocks and Shares when purchased, give the shareholder a small percentage of the business. This basically means you become a joint owner of the business, without the liability or responsibility to guide the company. You take a share in that company's prospects and their prosperity - or, if you're unfortunate, in their demise. In the UK, shares is the term we use, and they are typically listed in pennies. Stocks, in the US, are listed in dollars. But both amount to the same thing.
How do I buy a share?
You purchase a share by using a broker. In the old days, a broker was a person who provided facilitated the transaction between someone who wants to sell a share on the market and someone who wants to buy a share. In modern times a broker comes in the form of an electronic platform, which facilitates transactions on behalf of its clients. By opening an account on one of these electronic platforms in the form of a Stocks and Shares Account or an ISA, (the ISA is a tax-free holding place for your money, more on ISA's can be found here) you are able to trade shares on a public market, for instance the London Stock Exchange. Once you've set up and funded your account with cash, you will need to place a trade in the open market. Recommendations for a broker platform can be found in the Resources page.