{"id":3096,"date":"2016-03-31T06:36:52","date_gmt":"2016-03-31T06:36:52","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/5-things-to-know-about-investing\/"},"modified":"2024-04-21T05:07:39","modified_gmt":"2024-04-21T05:07:39","slug":"5-things-to-know-about-investing","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/5-things-to-know-about-investing\/","title":{"rendered":"5 Things to Know About Investing"},"content":{"rendered":"
\"image\"<\/figure>\n

Thinking about starting your
\nportfolio? Or maybe you\u2019re already a small time investor looking for a little
\nmore education. Either way, there\u2019s no shame in not knowing all the ins and
\nouts of markets. And sometimes, just getting familiar with the most basic
\nconcepts is all you need to make you feel more comfortable investing.<\/span><\/p>\n

With that in mind we\u2019ve got 5
\ninvesting basics to start you off:<\/span><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0OWNING
\nA COMPANY (OR AT LEAST A LITTLE BIT OF ONE)<\/span><\/b><\/p>\n

When you purchase a share on the
\nstock market you may ask,\u00a0what am I actually buying?\u00a0<\/b>You know
\nyour money has gone somewhere, but other than some documentation you don\u2019t get
\nmuch back. So it\u2019s a good question to ask.<\/span><\/p>\n

The answer: You own a percentage
\nof the company (or companies) of the stock that you just bought.<\/span><\/p>\n

If a company has 100 shares and
\nyou buy 50, you own 50% of that company.<\/span><\/p>\n

If you buy 10, you own 10%.<\/span><\/p>\n

If you buy 1, you own 1%.<\/span><\/p>\n

You\u2019ll usually own much, much
\nsmaller percentages than that, but no matter how much you own, if you have a
\nshare you have a legal stake in that company.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0THE
\nMARKETS CAN GO UP AND DOWN<\/span><\/b><\/p>\n

One of the greatest myths of the
\nstock market is that they usually go in one direction, up. We can very much
\nbust that myth and tell you they also go down.<\/span><\/p>\n

Over days, weeks, months, and
\nyears\u00a0the markets can move in both directions<\/b>. This is important to
\nbear in mind to avoid nasty surprises.<\/span><\/p>\n

Read more:<\/span><\/i>\u00a0Dollar-cost
\naveraging<\/i><\/a><\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0DIVIDENDS<\/span><\/b><\/p>\n

You\u2019ve probably heard of
\ndividends, and you\u2019re definitely forgiven for not knowing what they are.<\/span><\/p>\n

Dividends are a portion of a
\ncompany\u2019s earnings, paid to their shareholders. Usually a way for shareholders
\nto enjoy company profits.<\/span><\/p>\n

If you own 10 shares of a
\ncompany, and they pay a dividend of $1 per share, you get\u00a0$10\u00a0<\/b>($1
\nx 10)<\/span><\/p>\n

Read more:\u00a0<\/span><\/i>What is a dividend?<\/i><\/a><\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0INVESTING
\nIS FOR EVERYONE<\/span><\/b><\/p>\n

You\u2019d be forgiven for thinking
\nthat you need a fancy suit and a degree in finance to invest in the stock
\nmarket. However,\u00a0you don\u2019t.\u00a0<\/b>Anyone can invest in publicly
\nlisted companies, because they are as the name suggests, public! Just like
\nkicking a ball around with your mates on a public oval.<\/span><\/p>\n

We suggest you do your research
\nand think about your personal situation before making any investment decision.
\nWith apps like Raiz around anyone can invest, any time they want, with as
\nlittle as $5. For more information on Raiz fees, click here<\/span>.<\/a><\/span><\/p>\n

Read More:\u00a0<\/span><\/i>Unique Ways to
\nInvest with Raiz<\/i><\/a><\/p>\n

5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ROME
\nWASN\u2019T BUILT IN A DAY<\/span><\/b><\/p>\n

This isn\u2019t the Wolf of Wall
\nStreet, and sadly we\u2019re not Leonardo DiCaprio. When most people invest they
\ndon\u2019t do it to get rich quick. Building a portfolio and letting it grow takes
\ntime, but like much of life, good things come to those who wait\u2026<\/span><\/p>\n

\u2026 but don\u2019t wait until tomorrow
\nto start investing. Now you know the basics you can start building your
\nportfolio today!<\/span><\/b><\/p>\n

 <\/p>\n

Important Information<\/strong><\/span><\/p>\n

The information on this website is general advice only. This means it does not consider any person\u2019s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.<\/p>\n

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.<\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.<\/p>\n

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.<\/p>\n","protected":false},"excerpt":{"rendered":"

Thinking about starting your portfolio? Or maybe you\u2019re already a small time investor looking for a little more education. Either way, there\u2019s no shame in not knowing all the ins and outs of markets. And sometimes, just getting familiar with the most basic concepts is all you need to make you feel more comfortable investing. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[1142,137,547,344,151,224,233,314,289,290,355,117,150,285,1179,229,587,296,702,352]}