Investing money in shares
18/11/2018 8:00 a.m.
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.
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.
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
||NZX All Index level
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
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.
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
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
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