What are company shares?
Shares are the units of equity ownership in a given company or corporation.
These work to provide capital toward the company in return for part of the profit distribution. Investors with shares in a company are often entitled to dividends, a portion of the profits, relative to the shares they hold. These can be traded on an open stock exchange, both online and offline.
Types of companies and shares
On the stock exchanges around the world there are many companies listed and available to trade on.
These will include the shares attached to each of these companies, some of these with multiple types of share options. The main factors that will vary on the different shares to buy that are offered by a company on the stock market are: the dividends available, access to capital if the company is dissolved, and voting rights.
Each of these will shape the potential profits and value of the shares involved.
Understanding how each share will work for you and generate profit is a big part of the investing experience.
How to buy shares on the stock market?
In order to start picking up the best shares to buy on the stock exchange, you need to have access to the marketplace.
This involves working with an online broker for the most part, with access through the internet available to traders from South Africa and the world around.
Online platform to buy shares
The online platform you choose to get you started will play a large role in your trading experience. These systems do not only provide access to the trade room but add many unique ways of engaging with the market data available.
From the flexibility in trading and transactions, to hands on support and informative tools, these platforms can make investments much more intuitive.
How to start buying shares?
Buying shares in the modern day is easier than ever before.
The first thing you will require is access to the internet. Once you have a reliable connection, you can use your computer or even mobile phone to connect to a trustworthy broker. This process involves joining their community and accessing their platform.
How to register?
To start investing you must register an account on your favourite platform.
Registering an account with most brokers is a free and simple process. Once registered you gain access to all the available shares to buy now.
To start trading with real money you will have to make a deposit into your broker account, to use as capital for investments.
How to open a demo account?
The demo account will likely present itself to you through your chosen broker.
Most of the best brokers have an account like this, where traders can experience the market and make investments with a virtual balance.
This means that profits made are not able to be withdrawn, but it serves as a great tool for practicing. If the demo is not available directly through the webpage of the broker, it will most likely be available through their platform.
How to open a real account?
Your real trading account begins when you make the first deposit into your brokerage account.
This initial capital will then be available to use for trading on the market. This involves making an opening deposit.
How to replenish a deposit?
Each online platform will have their own way of depositing money into their system. These will involve different types of payment services that will connect your bank account with your trading account.
Find a broker that uses payment services you can trust and then use these to move around capital.
Minimum deposit amount
Every platform will have a set minimum deposit you can make into your account.
This will vary quite dramatically from broker to broker and can make a big difference to traders just starting out. The minimum determines where you can start making your real money trades and how much initial capital you may need for your investments.
How to withdraw money?
Like with making a deposit, there are payment services available on the various broker platforms that will allow you to withdraw your profits. As with the deposits, these may have restrictions on when and how much you can withdraw at any one time so make sure you read your broker’s terms and conditions around this.
Understand the process that your chosen broker goes through and how easy it is for you to take out your returns.
Is it safe to buy shares on the stock market?
The process of buying shares on the open stock market is as safe as the system you use to access this market. Your platform carries the brunt of this responsibility. One of their primary objectives is to make the experience as safe and secure as possible for their clients.
Is it safe to buy shares on the stock market online?
There are certain risks to many online activities, especially if they are done without knowing the dangers.
A top-quality online platform will have many high-level security features in place to protect their users against these potential risks. If done right, through a trusted and certified broker, the online trading experience should be safer than even trading offline.
Is my purchase of shares protected?
Again, this is largely dependent on the platform you use to navigate the marketplace. Online platforms take extensive actions to ensure that the environment they provide for their users is as comfortable and secure as possible.
Make sure you are trading with a well-regulated broker and your trades will be protected well.
How to buy shares safely on the stock market?
Make sure you visit sites that you trust when going online.
There are many ways scammers try and trick internet users, especially through unprotected or fake sites and platforms. Review the broker you pick and make sure they have clear certification from one of the top regulation entities operating around the world. These organisations monitor these platforms and make sure they are operating transparently.
To reduce risk of losing while trading, it is a good idea to try and diversify your portfolio as much as possible. This asset management involves dividing your personal finance into the most appropriate securities. This can also be done through exchange traded funds (ETFs) which are already diverse assortments of securities.
What are the best stocks to buy for beginners?
There is some contention over which stocks a beginner trader should start with. Traditionally, the best practice is to look for stable securities that will very likely see growth in the future. Companies like Amazon, Apple, Alphabet, and Disney are all very likely to increase their value and will therefore probably be some of the best shares to buy now.
Another option is to look to diversify your investment returns as soon as possible. Creating a broad portfolio reduces the risks because your eggs don’t end up in one basket. This can also be done through investments into Exchange traded funds (ETFs) and Indices, both of which are inherently diversified securities.
How do I begin to buy stocks?
The best way for traders of South Africa to begin buying stocks is through an online broker. These platforms offer a wide range of stock trading, with different assets and instruments to use. It is an easy and intuitive procedure to sign up and join any of these top-rated platforms.
Can I buy stock by myself?
To buy sell stock yourself you will still require a broker. Since joining their online community is so simple, this is the easiest and best way to buy stocks by yourself.
What's the cheapest way to buy stock?
The cheapest way into the marketplace is through a platform that has a very low minimum deposit to start trading. Some of these will have very little initial investment required but generally do not offer as broad a selection of tools and resources as other platforms might. Many top brokers still provide a good range of assets and assistance while allowing for low initial deposits and investment amounts.
Is it good time to invest in stocks?
If you understand the process and do the necessary research and planning, then any time can be a good time to invest in stocks. The secret is to understand as much as possible about the market so you can capitalise on changes, both long and short term. Prepared traders can make a profit from both a rising and falling market. Picking the right securities is also a significant factor in knowing when to invest in shares.
Is it smart to buy stocks now?
Investing offers a route towards financial freedom by having money that works for you. This can be achieved in any state of the market, as long as you understand the relative risks and potential for changes. Whether the market is growing or receding, there are ways of making it earn you a profit. This primarily involves understanding which of these companies have the best shares to buy in South Africa right now.
How many shares of a stock should I buy?
The amount of shares you should buy will vary depending on a lot of factors. The capital you have available is a big part of this decision. The securities you choose to invest in will also define this decision. A more stable asset will see more reliable growth and can incorporate a bigger risk with higher number of shares bought. Diversifying is also worth considering if you want to buy shares online in larger quantities.
Where are the shares of a company bought?
Shares are bought and sold on the stock exchange. These are open systems that allow companies to publicly list their company and provide shares for purchase. There are different exchanges all around the world, with a wide range of companies available across the board.
These exchanges can then be engaged with through an online broker, either directly or in the form of derivative trading. Derivative trading has the advantage of amplifying trades due to leverage through the broker.
What is the stock market and why buy shares?
The stock market is a place where companies can generate capital to use for business operations by selling off shares in the company. These shares carry with them a right to dividends or similar benefits for the holder. Shares can also have capital gains if the company's value rises and the share price alongside it.
How can I make money with stocks?
Practice and research are the two most important parts to being a successful trader. You must be willing to put in the time and research to understand the market so that you can reliably increase your returns on investments. Picking a strong and trusted broker also provides benefits through additional resources and access to greater markets.
How do I buy shares in a company?
Buy shares through an online broker that has access to the particular stock exchange. These platforms are the easiest way of gaining access to the shares of publicly listed companies.
What does it take to buy stocks?
A broker, an account on the broker’s platform, and an initial capital investment. That is all it takes to start buying stocks. From here you can grow and expand the experience, improving your profits.
What is the best time to buy stocks?
The best time to buy stocks is when you are most prepared. That is the biggest factor involved with timing your investments. You can make a profit from the market just as long as you are able to properly read potential changes that may occur.
How to know if a security is expensive or cheap?
The actual price of shares is much less important than the projected direction of the price. Cheap or expensive, doesn’t really matter if the price is going in the wrong direction. On top of this, the share price cannot really tell you how well the stock is doing right at that moment. A good security is one that can be reliably expected to grow in the foreseeable future.
What is a “Blue Chip” share?
Shares from blue chip stocks are generally regarded as very robust and reliable investments. These securities have demonstrated they have a long term history of growth and will likely retain their value and even grow for the long-term future. They make good investments for this reason.
What do you get when you buy shares?
You gain access to dividends of potential profits made by the company. This is not always in the form of dividend stocks, with other benefits depending on the type of shares. You can also make a profit through capital gains when the share price of your bought shares rises as the company grows, making a profit should you sell the shares.
How to buy shares in South Africa?
South Africa has access to many of the best online platforms available. These brokers are the best way to connect to the market and get investing. The sign-up process is easy to understand and sort out, having traders within the trade room in minutes.
Where can I buy and sell shares in South Africa?
If you are a trader looking to trade shares on any of the available stock exchanges around the world then many of the top broker platforms will be the best solution. If you want to trade on the South African exchange, the JSE, you can do this through select platforms online or directly. Trading online is still one of the easiest and safest ways to engage with the marketplace.