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Equities and stock exchanges
Why invest in equities
What you need to know about equities
Investing in the equity of a company
When you buy equities or shares of a company, in essence you are buying a share of that company. That is, you become a shareholder.
Trading in organized markets
The stock exchange is an organized market where investors can buy and sell financial instruments, such as shares, derivatives, bonds etc.
Prices change daily depending on the demand and supply of every financial instrument, and may be affected by the course of the company itself, the expectations for its future path and the developments in the economy in general.
What are the potential benefits
- You earn profit and increase your capital, if the share price goes up and you sell your shares.
- You create a potential source of income if the share distributes dividend.
What are the usual risks
- The value of your investment depends on market fluctuations, and the dividend is not fixed or certain.
- You risk losing a significant part of your capital if you need to sell when the share price goes down.
- You risk losing up to the entire investment if the company goes bankrupt.
Affordable, long-term investment option
Investing in shares offers the option for higher returns, but entails several risks. You can mitigate risk if you:
- Maintain a diversified portfolio – The more varied the selection of shares in your portfolio is the less likely it is to suffer great loss from an individual share.
- Invest with a long-term horizon – Over time you have more room to take corrective measures and chances that the market will recover increase.
- Choose shares carefully – The share price must correspond to the value of the company, its outlook and the economy it is active in. Study the financial information, read research insights and listen to the experts.
- Are prepared for a bear market – Markets may exhibit intense fluctuations. It is important that you don’t start selling at low prices due to panic.
Find the right shares for you
Before choosing to invest in shares, ask yourself:
- What are my goals – What do you want to achieve in 1, 3 or 5 years? Are you looking for capital gains or a regular income?
- How much risk am I willing to assume – Which countries or markets do you want to invest in? Does the company you selected have good financial results? What is the company’s outlook? What is your investment horizon?
- How much can I invest – What are your sources of income? Do you have any savings for times of need?
- How do I choose shares – Can you carry out market and equity analysis? Are reports you find online sufficient enough for you? Do you need professional guidance?
Invest in shares
Online through ALPHATRADE
Gain access to stock markets on the go from your computer, mobile or over the phone.
Log in with your e-Banking credentials, carry out trading transactions and get market information on the go.
Participate in public offerings
Subscribe to public offerings of shares and bonds issued by large companies, organisations and banks, by appointment at any branch or through ALPHATRADE.
Look for the prospectus you’re interested in and get all the information.
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