Investing in shares? Stacks can help you evaluate the level of risk involved, and understand the complex regulations and tax implications so that you protect your share investments.
Investing in shares can be very lucrative and provide a good option for investors to increase their wealth. But with share investment comes risk and it is important that you take careful consideration before leaping in.
Buying shares means buying a fraction of a company. If the company makes a profit, you make a return on your shares, known as a dividend. You can buy shares through a broker, through a managed fund, as part of an employee share scheme, or in a float (or ‘Initial Public Offering’), where a company raises capital by offering new shares to the market.
Having a share portfolio can help to balance the level of risk so that more high risk investments that offer a higher return, are balanced with safer, more conservative investments that may not offer such a high return but will offer stability in terms of a return on investment.
Stacks Law Firm can provide expert advice about share investments, helping you to understand and evaluate the risks involved, and your legal position as a shareholder. We can also advise you of any changes to the law that may affect your investment, and assess the implications for your investment in the event of company takeovers or buy-back schemes.
Factors that can affect the value of your shares
- Changes in law and taxation regulations
- Natural disasters
- Company disputes
- Activities or announcements by competitors
- Technological advances
Tips for managing your share investment
Company share prices change. You want to make sure you stay up-to-date so that you know how your shares are performing, and if and when you should consider selling.
It is important that you read all company reports and statements, and anything written about the company or its competitors in the Business section of the paper. This will alert you to any possible problems or changes that may affect the value of your shares, such as company takeovers.
Need advice about investing in shares? Call us today