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Showing posts with the label Stock and shares

Bull and Bear Market

The Bull and bear market. Bull market Bull market and bear market are used when describing the trends of securities. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies and commodities and other types of investments. Investors can also take a bullish or bearish stance, depending upon their outlook that is when you believe the price will rise or the price will fall and vice versa. A bull market begins when investors feel that prices will start, then continue, to rise; they then begin buying stocks in the hope that they are right. This belief and the actions that follow cause stock prices to rise again. Because prices of securities rise and fall essentially continuously during trading, the term "bull market" is typically reserved for extended periods in which a large portion of security prices are rising. Bull markets tend to last for months or even years. The bull

Stock and shares

What is a share ? A share is a negotiable unit of ownership that represents an equal proportion of a company's capital. This entitles the owner of such units to the proportion of the company's assets and earnings.  Shares are tiny fractions of a company and owning a little means ownership to a portion of that company. Shares are bought and sold on stock exchange and or through a registered broker. When you own shares of a company that company recognises you as a shareholder and as a result you will have rights to attend the general meetings of that company , receive dividends when they are disbursed and also the right to sell your shares to somebody else.  The fact you are privilege to a company's profit is the major benefit. The amount you earn from dividends is directly proportional to the amount of unit of shares you own. BENEFITS OF SHARES 1. Liquidity- it's easy to sale at anytime 2. Capital appreciation- The value of your shares may increase over time earning yo


What are Dividends ? You can separate the layman, investor and fund manager from how they describe their investments. The layman will refer to their holdings as “stocks”, the investor “ shares ”, and the fund manager “equities”. If you are unsure what dividends are, this post will be a light introductory read to get you up to speed. I will briefly talk about investing for dividends, and focus on what I really want to talk about in the next post which is franking credits. Dividends are cash payments from companies to its shareholders. I believe there are multiple resourcesavailable on this topic is so I will just mention the important stuff. All dividends come from companies, but not all companies pay dividends. Payments from profit from companies to shareholders are known as dividends, whilst the term distribution applies to payments from trusts to unit-holders. A dividend paying company is like an egg-laying chicken. Suppose you have a chicken and it lays eggs every once in a whi