Quick Quote

Investing money in shares

   
28/02/2017 4:45 a.m.
Trading
NZ/AU Markets   
International Markets   
Exchange Traded Funds   
NZ Fixed interest   
Investing
New Issues
Government Kiwi Bonds
UDC Term Investments
ANZ Investment Funds
ANZ KiwiSaver Scheme
ANZ Insurance
Currencies & Cash
Online Multi-Currency Account   
Shares are part ownership of a company. ANZ Securities offers investors the ability to buy and sell their part ownership in listed companies on the New Zealand (NZX) and Australian (ASX) share markets and selected companies on the US (NYSE, NASDAQ, AMEX) and UK (LSE) share markets.


Safe driving


The success of investing in shares is largely determined by the performance and prospects of the companies you invest in. You buy good shares through buying and retaining ownership in good companies.


Performance driven


The following data shows the quarterly growth of the NZX All Index on the New Zealand Stock Exchange from August 1998 to August 2008. It includes a drop of 19.29% within the index during the 2008 financial credit crisis. It also includes a major drop that occurred during the internet crash in 2000/01.

NZX All Index - Performance over 10 years
Date NZX All Index level Growth over
5 years
Growth over
10 years
August 1998 1,272 points
August 2003 2,238 points 76%
August 2008 3,340 points 49% 163%


      Figures correct at August 2008.
      Source: New Zealand Exchange (NZX)


Despite the periods where the index has crashed, it has grown overall. While shares are a riskier investment, the message is to invest long term and live with volatility.  You increase your risk of loss with shorter investment timeframes.


Profit


You make money from shares through dividend income and capital gain. Dividend income is how companies distribute profits to their shareholders. Capital gain is the growth of the share price of the company.


Risky driving


Risk, when applied to shares, is losing some or all of your money. Companies can go bankrupt, reduce in value or fail to deliver a profit to their shareholders. You can alleviate risk by learning how to invest well and by spreading your risk across a number of investments.

You can use the Sorted website to work out your risk profile (see sorted.org.nz).


Start your engines


If you already know what you want to buy and sell you must apply to become an ANZ Securities client before you can submit orders through our online service.

Find out more about what you need to know here.

Become a client of ANZ Securities here.

You can also view our brokerage rates here or get a snapshot of today's market activity here.