Investing+in+the+Sharemarket

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**__Shares__**   Shares are a unit of ownership in a company. People invest in shares to make money; to increase their capital.

They also might invest in companies so later on when they are in retirement they have enough money in shares to last them the rest of their lives.

Fund – Buys shares for you, but you don’t get a choice in what shares you get, you have to trust the fund to pick a reliable company. Stockbrocker – He helps you buy the shares of your choice, except he charges you, either with a percentage of the profit, or an outright fee.   It is like a launch pad where a company that wants to raise capital (money), issue shares to investors for the first time.
 * __The Primary Market__ **  

Not every company can have its shares listed on the share market. The company must be large enough and have been operating successfully for some time to qualify. This is designed to give people confidence, however just because they are a listed company doesn’t mean they will be successful in the future.

Once a company is listed, it has to obey certain rules, and announce anything that may cause their share price to change. **The Secondary Market ** 

This is the market where shares that have already been issued are then bought and sold. Price is determined by supply and demand. **__Risk and Diversification__ **     In the share market there are high-risk investments, medium risks and low risks.

High risk obviously involves a lot of risk, but the return is big. Medium has a risk, but a nice return. Low risk isn’t very risky, but has a small return.

Diversification in a market is important. This means that you should buy shares in all different sections of the market so all your shares aren’t in the same section. “Don’t put all your eggs in one basket” comes into place here.

__Tips and Hints__
<span style="color: rgb(128, 0, 128);"> <span style="font-size: 14pt; color: rgb(255, 0, 255);">A few tips when buying shares: - Make sure you are very knowledgeable with the share market, and that you know how each section of the market is going. - If you aren’t so great with keeping up with it all, pay someone to help you out. - All things that rise must fall - All things that fall must rise



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