![]() It all depends on what shares you select and how many of them you want to buy. ![]() AIM is a junior market on the London Stock Exchange and typically contains smaller companies than those listed on the main FTSE indices, which in turn means it can be riskier – although there is also the possibility that up-and-coming firms will grow fast.įind out more about how AIM ISAs work here. So if you wanted to buy into Amazon or Tesla, for example, you would need to find a platform offering shares listed in the US. Some platforms will only allow you to invest in companies listed on the London Stock Exchange, while others let you buy and sell shares on markets around the world. High street banks such as Barclays, HSBC and Santander also offer investment services. There are lots of online providers to choose from, each offering a different selection of investments and differing fees. Also look out for the reputation of the company before committing. When choosing a trading platform, you need to take into account the fees and features. Once you are signed up, you simply have to select the shares you want to buy and home many of them.Īn investment platform lets you buy, sell and monitor your investments in one place. The easiest and cheapest way to buy shares is by using an investment platform. ![]() The value of your investments can go down as well as up and you may get back less than you put in. All investments carry a varying degree of risk and it’s important you understand the nature of these. ![]() See our guide to the top savings accounts here.Ĭapital at Risk. So if you want to save some cash with the goal of, say, for your grandchildren, paying for a wedding or putting it towards a house deposit in just a few years’ time, keeping it in a savings account would likely be a better bet. Ideally you should have a time horizon of at least five years to give a company the chance to ride out any bumps in its growth or downturns in the markets. If the company, the industry in which it operates, or the stock market in general performs badly – and the share price goes the other way – you will lose money if you end up selling your shares for less than you paid for them. When you pick a share, you are making a call on the future success of that company – that its share price will continue to go up in price from what you paid for it. You might receive dividends – regular payments made by the company to its shareholdersīuying shares, though, is riskier than just holding your money in a savings account or Premium Bonds, because a company can always decline in value, or it could ultimately fail.When the company is successful, the benefit for you as an investor can be two-fold: You can pick which you want to invest in, from Tesco and Ocado to HSBC and Coca-Cola. ![]() The FTSE 100 lists the 100 biggest stocks in the UK. When you buy a share, you technically own a part of that company.Ĭompanies issue shares to raise money and investors buy shares in firms that they believe will do well – so they can “share” in its success. For example, if a company is worth £50 million and there are 50 million shares, then each share is worth £1 (usually listed as 100p). You can buy shares in all kinds of everyday firms to ultimately ‘share’ in their success What is a share?Ī share is a tiny piece of a company that is listed on a stock market. This article contains affiliate links that can earn us revenue.
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