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What is Cryptocurrency?
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What is Cryptocurrency? Cryptocurrency is a type of digital money that only exists online. Unlike dollars or coins in your wallet, it is not printed by a government or controlled by a central bank. Instead, it runs on computer networks that record every transaction on something called a blockchain. A blockchain is like a…
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What is a dividend reinvestment plan (DRP)?
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What is a Dividend Reinvestment Plan (DRP)? A Dividend Reinvestment plan, often called a DRP, is an option some companies offer that lets you reinvest your dividends back into more shares instead of receiving the cash. For example, if you own 100 shares and the company pays a $100 dividend, you can choose to…
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How are shares taxed in Australia?
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How are shares taxed in Australia? Investing in shares doesn’t just invlolve buying and selling, it also has tax consqeuences. In Australia, there are two main types of tax that share investors need to be aware of. Captial gains tax (CGT) and tax on dividends. When you sell shares for more than you paid,…
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What is fundamental analysis?
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What is fundamental analysis? Fundamental analysis is the opposite of technical analysis. Instead of looking at charts, it focuses on the underlying business to decide whether a stock is a good investment. The goal is to figure out what a company is really worth and whether its current share price is too high, too…
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What is technical analysis?
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What is technical analysis? Technical analysis is a method of studying stock charts to try and predict where prices might move next. Instead of focusing on a company’s financials or business model, technical analysis looks at patterns in price and trading volume. The idea is that all available information is already reflected in the…
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What is a trading halt?
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What is a trading halt? From time to time, you might see the words “trading halt” next to a company’s shares on the ASX. This means the stock has temporarily stopped trading. Companies usually request a trading halt when they are about to release significant news, such as a big acquisition, a capital raisin,…
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What happens to my shares if the company goes broke?
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What happens to my shares if the company goes bankrupt? Bankruptcy is one of the biggest fears for investors. If a company you own shares in goes bankrupt, the process is not like watching the share price slwoly drift down. It usually happens when the company can no longer pay its debts and an…
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How to read a stock chart?
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How to read stock charts? When you first open a stock chart, it can look confusing with all the line, numbers and movements. At its core, a stock chart is simply a picture of a company’s share price over time. The horizontal axis shows the timeline, and the vertical axis shows the share price.…
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What is day trading?
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What is day trading? Day trading is a short-term strategy where people buy and sell shares within the same day to try and profit from small price movements. Instead of holding shares for months or years, day traded may only hold them for hours or even minutes. Day trading requires constant attention to the…
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What is dollar cost averaging?
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What is dolalr cost averaging? Dollar cost averaging is an investment strategy where you put in the same amount of money at regular intervals, regardless of whether the market is going up or down. For example, you might invest $500 into an ETF or company shares every month. The benefit of this approach is…