Understanding Shares

When you buy a share you are buying part ownership of a business. Investors usually invest in shares because they offer the opportunity for capital growth, which is important if a portfolio is going to keep ahead of inflation.

Other investors, especially those in retirement look for income, so tend to focus on buying shares with high dividend yields.

Short term investors or traders look to take advantage of short term moves in share price to make a profit through capital gains.

Whichever way you want to approach being a share owner it is important that you gain an understanding of what is involved and this section provides an overview of some key topics to advance your understanding.

What do sharemarket terms mean?

Before you invest in the sharemarket it is important to understand some of the more common terms that are used.

Explore common terms for definitions and more details.

What are the risks and benefits of owning shares?

Shares can be a sound long-term investment but of course there are always risks to be considered.

Learn more about the risks and benefits of shares.

What are my rights as a shareholder?

As a shareholder and part owner of the business you are entitled to certain rights.

Understand your shareholder rights in more detail.

What are the different types of shares?

If you are investing in the sharemarket it is important to undertand the differences between the different types of shares.

Learn about the different types of shares and what implications they may have for your portfolio.

What are franking credits?

One of the ways that company’s reward their shareholders is by paying out a dividend and attached to some of these dividends are franking credits.

Learn more about franking credits and how they benefit you as an investor.

What are ASX Sectors?

Sectors are the ASX’s classification system based on Global Industry Classification Standards.

Learn more about ASX sectors and how you might use them as part of your investment strategy.

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