Stock Markets
It is possible to achieve capital growth and income by investing in any of the public companies listed on the London Stock Exchange or the UK equity markets. You can do this by buying shares in the company.
Buying shares means buying into the ownership of the company enabling you to vote in decisions affecting it and to share in profits. Profits are divided up and while some may be re-invested in the business, some will be distributed to the shareholders as dividends.
While it is possible that your investment increase at a greater rate than through a savings account, there are no guarantees and you could risk losing it altogether if the company were to go into liquidation. It is therefore a high risk investment and
should not be viewed as short-term. Shares in the top FSTE 100 companies will involve less risk than shares in smaller companies and it is also possible to reduce the risk by holding a diverse selection of shares in different companies.
It is very easy to organise your share-trading either through a bank, stock broker or by
on-line share dealing.
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Gilts are government bonds which can be traded on the stock market.
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Spread Betting is a higher risk strategy.
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Contracts of Difference (CFD's) are another way of trading on the stock market.
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Pennyshares are low cost high risk shares. Get more information on
Pennyshares here.
