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Delete - Last Modified By: DIR at 14/04/2016 11:24:44 AM
What is investing?
Investing means to put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.
If we are to break this down, investing is using our money to make more money.
You can buy property such as houses… You can buy shares, which is to own a small part of a company… Or you could purchase and trade in commodities (such as gold or oil) or trade in foreign currency such as US dollars, or Euros.
How do you buy and sell shares?
Read the following page and watch the video on the page.
https://www.moneysmart.gov.au/investing/shares/how-to-buy-and-sell-shares
How do you know what shares to buy?
Before buying shares, it is important to know a bit about the shares you are buying. What does the company do? What is the history of the share price? Is it at an all time low? If so, why? Or has it been steadily increasing over a number of years?
The type of shares you buy will depend on your overall goal.
Some questions to answer
What is an IPO?
What does the word float mean in regards to shares?
What are dividends?
What does the term blue-chip mean?
Try buying some shares
Using the game/simulator at www.stockwatch.com.au buy shares in at least 5 companies (up to as many as you like). Don’t rush this purchase, do your research first.
Before you decide on which shares to buy, conduct some research on the internet about how to decide which shares to buy. Some useful sites are listed at the bottom, but do your own research to find other information on the web.
Put together a profile of 5 of the companies that you are going to buy and save this in your portfolio and send this to your teacher:
- Why are you choosing these shares?
- What does the company do? What is their business?
- What has been in the news in the past year concerning this company?
- What is the history of their share price in the past 6months- 1 year
- When was the last dividend paid by the company and how much was it?
Useful sites for further reading.
www.stockwatch.com.au
http://www.morningstar.com.au/Home
www.asx.com.au
http://www.asx.com.au/prices/company-information.htm
https://www.investsmart.com.au/shares