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Is investing in stocks risky?
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Is investing in stocks risky? Every investment carries some level of risk, and stocks are no different. The value of a share can go up or down depending on how the company performs, what investors expect, and what is happening in the economy. This means there is always the chance of losing money if…
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What is a stock broker and do i need one?
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What is a stock broker and do i need one? A stock broker is a service or platform that allows you to buy and sell shares on the stock exchange. In Australia, you cannot buy shares directly on the ASX yourself. You need a broker to place the orders on your behalf. Brokers can…
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Can I lose all my money in stocks?
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Can i lose all my money in stocks? Many beginners worry about whether investing in stocks could wipe out all their savings. The short answer is yes, it is technically possible, but it is very rare if you spread your money across several companies. Stocks can go to zero and they can be delisted…
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What is volatility?
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What is volatility? Volatility refers to how much and how quickly share prices move up and down. A highly volatile stock may rise or fall by large amounts in a single day. A low-volatility stock tends to move more steadily, changing only a little each day. Volatility is driven by many factors. Company announcements,…
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What is Liquidity?
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What is Liquidity? Liquidity describes how easily and quickly you can buy or sell a share without changing its price too much. A highly liquid stock has lots of buyers and sellers, so trades happen smoothly at or close to the current price. A less liquid stock might only have a few people trading,…
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What is an IPO?
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What is an IPO? An Initial Public Offering, or IPO, is the first time a private company sells its shares to the piblic and lists on the stock exchange. Companies often launch IPOs to raise money to expand, pay off debt, or allow early investors to cash out some of their holdings. After the…
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Understanding P/e ratios?
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Understanding P/E Rations. The price-to-earnings ratio, or P/E ration, is one of the most common ways investors compare companies. It measures how much the market is willing to pay today for each dollar of profit a company makes. To calculate it, divide the share price by the company’s earnings per share. If a company…
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What is market capitalisation?
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What is Market Capitalisation? Market capitalisation, often called market cap, is one fo the simplest ways to measure the sIze of a company on the market. It is calculated by multiplying the current share price by the total number of shares a company has issued. For example, if a company has one billion shares…
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ASX Stock Codes
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ASX stock codes. Every company listed on the Australian Securities Exchange is given a short code, usually made up of three letters. This is called a stock code, or ticket symbol, and it used to identify the company when you buy or sell shares. Instead of typing out the full company name, investors and…
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ETFs explained
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What is an ETF? An ETF, or Exchange Traded Fund, is a type of investment that lets you buy a whole group of shares in one go. Instead of choosing individual companies, you buy units in the fund and the fund owns a basket of stocks. ETFs trade on the ASX just like normal…