{"id":101759,"date":"2024-03-10T07:47:00","date_gmt":"2024-03-10T07:47:00","guid":{"rendered":"https:\/\/arielle.com.au\/?p=101759"},"modified":"2026-01-22T04:43:58","modified_gmt":"2026-01-22T04:43:58","slug":"investing-in-shares-for-beginners","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/investing-in-shares-for-beginners\/","title":{"rendered":"Ultimate Guide To Investing In Shares For Beginners"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 9<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>The statistics for investing success are grim. About nine out of every ten people setting out to become investors in the stock markets fail &#8211; either by losing all of their money or by losing so much of it that they are forced to give up investing.<\/p>\n\n\n\n<p>Yet, more than one million Australians plan to start investing via stock exchanges in the coming year.<\/p>\n\n\n\n<p>(Despite&nbsp;&#8211; or perhaps because of &#8211; <a href=\"https:\/\/arielle.com.au\/interest-rate-news\/\" target=\"_blank\">13 consecutive interest rate rises<\/a>&nbsp;in the last few years making the <a href=\"https:\/\/arielle.com.au\/cost-of-living-in-australia\/\">cost of living<\/a> unbearable for many).<\/p>\n\n\n\n<p>Education is the first step to success. Use the guide below to master the basics before you start your investment journey. Let\u2019s begin!<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/how-to-buy-microsoft-msft-stocks-shares\/\">How To Buy Microsoft Shares In Australia<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Does The Stock Market Work?<\/strong><\/h2>\n\n\n\n<p>When a company \u2018goes public\u2019, it gives the general public a chance to take part ownership by issuing a certain number of shares in the company.<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">A float<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> describes the process of issuing shares to the public.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">A primary market<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> is the way investors directly buy issued shares initially from the company.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">An initial public offering (IPO)<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> is one common type of primary market sale<\/span>.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Once company shares have been issued, they can be freely bought and sold on the stock market.<\/p>\n\n\n\n<p>This happens through stock exchanges such as the Australian Securities Exchange (ASX) in Australia or the New York Stock Exchange (NYSE) in the US, sometimes called secondary markets.<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Stock exchanges<\/strong> around the world facilitate access to shares in publicly listed companies. While an Australian-based company would generally list on the ASX, a company may be listed on multiple exchanges.<\/li><li><strong>Stockbrokers<\/strong>, online brokerages, and platforms are the only authorised agents\/firms registered with an exchange. These middlemen can initiate purchases and sales via exchanges.\u00a0<\/li><li><strong>Individual investors<\/strong> open a brokerage account with a stockbroker or an online share trading platform to acquire or sell individual stocks in their portfolios.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Each exchange is similar to an online retail marketplace like eBay, where the price of items fluctuates depending on availability and the price people are willing to pay.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">If many investors want to buy a particular stock, but few people are selling, each share\u2019s price is likely to rise in value because they are scarce but desirable.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>Collectively, these global markets for trading stocks are called stock markets.<\/p>\n\n\n\n<p>Finance types or news anchors might refer to \u2018the stock market\u2019 or \u2018the market\u2019 when describing changes or trends in share prices nationally, or across multiple exchanges, industries and geographies.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Indexes like the <a href=\"https:\/\/arielle.com.au\/what-is-asx200\/\">S&amp;P\/ASX 200<\/a> provide a benchmark for the market\u2019s performance. In the case of the ASX 200, by tracking the top 200 companies listed on the ASX based on their market capitalisation. A range of other indices exist to give investors a quick snapshot of different aspects of the market.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Shares Vs. Stocks Vs. Equities.<\/strong><\/h2>\n\n\n\n<p>Stock is the more generalised term used to describe the overall ownership of a publicly listed company, while a share is the most accurate way to describe the smallest, single unit of ownership in a specific company.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>You can think of stock as the company\u2019s whole pie \u2014 the total number of shares issued on the market \u2014 with each share being a single slice of the pie.<\/em><\/span><\/div><\/div>\n\n\n\n<p>Most people invest in multiple shares across multiple companies, so the terms &#8220;stocks&#8221; and &#8220;shares&#8221; are used interchangeably to talk about company ownership.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/how-to-buy-netflix-nflx-shares-in-australia\/\">How To Buy Netflix Shares In Australia<\/a>).<\/strong><\/p>\n\n\n\n<p>Investing in a company can be described as having equity, so you might also hear shares called equities.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Another investing term that can muddy the water is securities, which is a broader label for any tradable financial asset like stocks, bonds, options, futures, and derivatives.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Does Being A Shareholder Mean?<\/strong><\/h2>\n\n\n\n<p>Companies, institutions and individuals can all own a company\u2019s stock by buying shares. Even owning one share makes you a shareholder.<\/p>\n\n\n\n<p>Shareholders don\u2019t own the company\u2019s assets, and they\u2019re not responsible for the company\u2019s liabilities (e.g., debt), but they do gain several rights, including being able to:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Vote for company directors<\/strong>, and on other big decisions at the annual general meeting (although few individual investors take up this opportunity).<\/li><li><strong>Be informed about the company\u2019s operations<\/strong> and financials through access to reports.<\/li><li><strong>Receive a portion share of the company\u2019s profits<\/strong> if it distributes dividends.<\/li><li><strong>Access future equity actions<\/strong> like share buybacks, new share issues or mergers.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>While \u2018ordinary\u2019 shares are the most common type issued, companies can issue different kinds of shares with different rights attached.<\/p>\n\n\n\n<p>For instance, preference shares (sometimes called hybrids) entitle holders to be paid ahead of ordinary shareholders.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Also, the number of shares available in the market can change. For example, a company might issue more shares to raise money, which can dilute the value of shares held by existing shareholders.\u00a0<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:41px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Do Ordinary Australians Invest In Shares?<\/strong><\/h2>\n\n\n\n<p>Investing in shares of companies with the potential for growth and long-term positive results means you\u2019ll benefit from any associated increases in share prices, plus receive a share of any profits distributed.<\/p>\n\n\n\n<p>Returns on stock market investments fall into two main categories:<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Capital Gains.<\/strong><\/h3>\n\n\n\n<p>Essentially, the difference between what you paid for your shares and the price you can sell them for.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">The value of the shares you hold (your capital) increases as share prices lift over time, but conversely, capital losses are possible if your shares lose market value.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>Capital gains or losses are only realised when you choose to sell.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Dividends.<\/strong><\/h3>\n\n\n\n<p>A discretionary payment distributed from a company\u2019s profits as a way to reward shareholders, typically paid annually, at an amount proportional to the number of shares you hold.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Not all companies pay dividends (e.g., Apple and Tesla famously don&#8217;t), and the amount paid varies.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>Some people keep dividends as income, while others use company dividend reinvestment plans (DRP) to purchase more shares and keep growing their portfolio.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Many Australians Invest In the Stock Market?<\/strong><\/h2>\n\n\n\n<p>Investing in shares is a common wealth-generation tactic in Australia.<\/p>\n\n\n\n<p>For both beginners and more experienced individual investors in Australia, directly owning shares in Australian companies listed on the ASX is the most popular investment outside of superannuation or owning their own home.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\"><a href=\"https:\/\/www.asx.com.au\/investors\/investment-tools-and-resources\/australian-investor-study\">In 2023, 58% of Australians directly held Australian shares.<\/a> The next most popular stock market listed investment was exchange-traded funds (ETFs) at 20%, followed closely by direct ownership of international shares (16%).<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are Shares A Safe Form Of Investment?<\/strong><\/h2>\n\n\n\n<p>There are no guarantees in investing and no perfectly safe way to get rich.<\/p>\n\n\n\n<p>However, you can take some reassurance from the fact that investing in shares is a widely practiced approach.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>Investments exist on a spectrum of risk versus return.<\/span><\/div><\/div>\n\n\n\n<p>Cash in the bank and government-issued bonds are considered low-risk investments, but the returns are usually lower than what you could reasonably expect from the share market when holding your investments long-term.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Over a 20-30 year timeframe, the Australian share market has enjoyed strong returns in the 8-9% vicinity, despite intermittent ups and downs caused by events like the Global Financial Crisis (GFC) and the recent Covid-19 pandemic.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>This begs the question: how risky are shares?<\/p>\n\n\n\n<p>The main risk is that the value of the shares you hold will drop, rather than increase. This can happen when:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>The wider share market declines or crashes <\/strong>due to poor economic conditions, major disruptions and disasters, or panicked investors selling off their shares.<\/li><li><strong>Companies fail or fall from grace<\/strong> through underperformance, unsustainable debt, being ousted by a competitor, or reputational damage from unethical or non-compliant operations.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Markets can be volatile, and backing the wrong companies can turn out badly.<\/p>\n\n\n\n<p>Living with some level of variability in share prices is something that most investors are comfortable with, but it depends on <em>your<\/em> risk tolerance.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Do Investors Diversify Their Portfolios?<\/strong><\/h2>\n\n\n\n<p>Diversification is a core tenet of a good investment portfolio, because it spreads your risk. If one company or industry experiences a downturn, others may be unaffected or even buoyed.<\/p>\n\n\n\n<p>A fund managed on your behalf by an investment firm might include anywhere from 20-200 different stocks, which would be adjusted by a dedicated expert.<\/p>\n\n\n\n<p>Individual investors may have less experience and less time to handle a large collection of stocks bought directly.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Affordably achieving diversification draws many investors to <a href=\"https:\/\/arielle.com.au\/what-is-an-etf\/\">Exchange Traded Funds<\/a> (ETFs) \u2014 which can be bought and sold via stock exchanges just like shares.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>When you buy units of ETFs, you pool your money with others to gain exposure to a collection of assets, like shares within an index or focused on a specific industry.<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">The key difference <\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">from directly buying stocks is that you don\u2019t own the shares in the ETF. The ETF provider holds the underlying assets.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">ETFs are simpler<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> because you get a stake in multiple stocks with one trade, which can lower your brokerage costs. Note that ETFs do charge an annual management fee.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">You still benefit <\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">from any capital growth of shares&#8217; value (the ETF units you hold will be worth more on the market) and still receive a portion of any dividends paid<\/span><\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Much Does Investing In Shares Cost?<\/strong><\/h2>\n\n\n\n<p>First, remember that most brokers (e.g., Selfwealth and eToro) require you to buy at least $500 worth of shares when purchasing for the first time.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Most <a href=\"https:\/\/arielle.com.au\/cheapest-brokerage-in-australia\/\">low-cost stock brokerages<\/a> like Moomoo and Webull have no minimum deposit requirements.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>Remember, <a href=\"https:\/\/arielle.com.au\/brokerage-fees-australia\/\">each trade will come with transaction costs<\/a>.<\/p>\n\n\n\n<p>Some brokers have very simple fee structures (e.g., Selfwealth charges $9.5 commission per trade &#8211; that&#8217;s it), while others are very convoluted (e.g., Interactive Brokers has a tiered fee structure, and it varies depending on the asset you&#8217;re buying).<\/p>\n\n\n\n<p>We recommend you reduce brokerage fees by <a href=\"https:\/\/arielle.com.au\/best-stock-trading-app-australia\/\">reading our guide to the best stock trading apps<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">To make investing in shares worthwhile, you need to make returns that exceed the cost of your investments.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:42px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How To Choose Which Shares To Invest In?<\/strong><\/h2>\n\n\n\n<p>If you want to buy individual shares in a company directly, you\u2019ll need to assess its market value and decide whether you think it will thrive in the future.<\/p>\n\n\n\n<p>Successful investors start by getting an in-depth knowledge of how the company operates, its financial performance, and its strategic growth plans.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>Annual reports are a good source of this data.<\/span><\/div><\/div>\n\n\n\n<p>They contrast this know-how to broader economic conditions, industry trends, and challenges that could impact the company and review its major competitors and their performance.<\/p>\n\n\n\n<p>They pay specific attention to the following core metrics.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Market Capitalisation.<\/strong><\/h3>\n\n\n\n<p>It offers a sense of how the company is valued based on equity, which is different from its value based on its balance sheet.<\/p>\n\n\n\n<p>Market cap is calculated by multiplying the current share price by the total number of shares on issue.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Obviously, a large market cap is usually related to a company\u2019s size and success.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>However, regardless of how profitable the company currently is, demand for its shares among investors can boost its share price, raising the stock\u2019s overall value in the market.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Historical Share Price.<\/strong><\/h3>\n\n\n\n<p>Has the share price been steadily rising or declining over time? A downward trend could indicate the company poses a higher risk.<\/p>\n\n\n\n<p>A rapid rise in share value might indicate high levels of speculative buying (e.g., not based on the company\u2019s inherent value and potential), which can create bubbles that eventually burst.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Dividend Yield.<\/strong><\/h3>\n\n\n\n<p>If income is a driver for the investor, they&#8217;ll review the stock\u2019s dividend yield to see if it\u2019s both attractive and appears to be sustainable.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Exceptionally high dividend yields can arise because a stock\u2019s share price has depreciated (because the yield percentage reflects the annual dividend divided by the current stock price).<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>This might indicate that a company is in decline and will not be able to distribute profits in the future.<\/p>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Price-To-Earnings Ratio.<\/strong><\/h3>\n\n\n\n<p>In addition to the actual price of each share or unit in a fund, investors consider its price-to-earnings ratio (P\/E).<\/p>\n\n\n\n<p>P\/E ratio reveals roughly how much was paid for each dollar returned, based on dividing the share price by the previous year\u2019s earnings per share (EPS).<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">P\/E ratios are a useful guide to a share\u2019s price relative to earnings. This can help investors decide if shares look cheap or expensive. However, remember that while a higher earnings multiple could indicate a stock is overvalued, it also shows that other investors have been willing to buy the stock because they see potential in it.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Investors Do Before They Invest Money.<\/strong><\/h2>\n\n\n\n<p>The difference between experienced and beginner investors is preparation.<\/p>\n\n\n\n<p>While beginners tend to act impulsively and think short-term, experienced investors start by understanding their investment goals and building an investment strategy that helps them achieve them.<\/p>\n\n\n\n<p>Experienced investors:<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Know Their Financial Position.<\/strong><\/h3>\n\n\n\n<p>This includes cash flow and budget for spending and saving.<\/p>\n\n\n\n<p>They know how much they can put towards investments without impacting their financial health.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Any money invested is at risk.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Clarify Their Financial Goals.<\/strong><\/h3>\n\n\n\n<p>Both short and long-term.<\/p>\n\n\n\n<p>The big one is retirement, but other goals can include getting married, buying a home or a new car, becoming a parent, starting a business, returning to study, and taking a major holiday.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Did You Know?<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Best financial goals are specific and measurable. For example, &#8220;I want to retire with $50,000 of annual cash flow from my Australian stock market investments.&#8221;<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Estimate The Rate Of Return.<\/strong><\/h3>\n\n\n\n<p>Experienced investors know which investment choices can help them reach their financial.<\/p>\n\n\n\n<p>Importantly, they sense-test it against the level of risk they&#8217;re prepared to accept, and the kind of returns different investment types have historically been capable of delivering.<\/p>\n\n\n\n<p>Where there\u2019s a mismatch, they adjust their investment strategy or expectations.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Determine Asset Allocation.<\/strong><\/h3>\n\n\n\n<p>In other words, which types of assets belong in the investment portfolio<strong>,<\/strong> and what share of the portfolio should they take up?<\/p>\n\n\n\n<p>Shares typically form a significant part of the average Australian\u2019s portfolio, balanced by a portion of other assets such as bonds, cash (term deposits), real estate, commodities like gold and silver, and increasingly, cryptocurrencies.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/best-crypto-exchange-australia\/\">Best Cryptocurrency Exchanges In Australia<\/a>).<\/strong><\/p>\n\n\n\n<p>Once the investors know how much they&#8217;re willing to commit to shares, they decide on the ideal mix.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Conservative investors <\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">looking for stable returns might choose shares in established large and mid-cap companies (e.g. so-called blue-chip shares).<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">People closer to retirement<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> sometimes leverage their capital to gain passive income by skewing towards dividend-paying shares or ETFs.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Those with a shorter timeline<\/strong><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> for achieving returns \u2014 who are prepared to accept more risk \u2014 sometimes favour growth stocks with potentially higher returns.<\/span><\/li><li><strong style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Eco-conscious or <\/strong><a style=\"font-size: revert; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\" href=\"https:\/\/arielle.com.au\/ethical-investing-in-australia\/\">ethical investors<\/a><span style=\"font-size: revert; color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\"> might avoid companies in fossil fuel industries, or screen shares based on companies\u2019 commitment to ESG principles.<\/span> <\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final Words On Stock Market Investing.<\/strong><\/h2>\n\n\n\n<p>Learning about investing is a lifelong process. We suggest you learn as much as possible about the stock market before you start investing.<\/p>\n\n\n\n<p>When you\u2019re prepared and purposeful, you\u2019re more likely to make wise choices. Even Warren Buffet, despite his wealth of experience, still spends most of his days reading.<\/p>\n\n\n\n<p>Learning never stops.<\/p>\n\n\n\n<p>Finally, consider obtaining investment advice from a professional financial advisor. This article is written for entertainment and informational purpose only &#8211; it doesn&#8217;t take your personal financial situation into account.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Disclaimer.<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">The information presented here is general in nature and does not endorse any investment product, market, provider, or service. It is not intended as financial advice or a recommendation to trade &#8211; or not to trade. Trading futures, shares, ETFs, options, CFDs, and forex involves a high level of risk and may result in significant losses, particularly when leverage is used. Past performance does not guarantee future results. Before trading, consider whether the product is appropriate for your circumstances and seek independent professional advice. Refer to the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) on the provider\u2019s website.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Jody<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 9<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The statistics for investing success are grim. About nine out of every ten people setting out to become investors in<\/p>\n","protected":false},"author":14,"featured_media":101778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_uag_custom_page_level_css":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[267,304],"tags":[],"class_list":["post-101759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money","category-start-share-trading"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ultimate Guide To Investing In Shares For Beginners<\/title>\n<meta name=\"description\" content=\"Want to start investing in the share market but feeling intimidated by the steps and terminology? 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