Investing jargon made simple: Stocks & Shares

Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.

Rebecca Thomas explains what Stocks and Shares are, and why diversification matters.

Stocks and Shares are parts of companies that can be bought and sold by members of the public. In other words, a share of ownership in the company is for sale at a set price which could then go up or down based on the performance of the company.

The advantage of owning Stocks & Shares is that they can go up in value. For example, if a company is successful and grows bigger, your stock value is going to increase. This is where you can grow your money, the idea is that you buy a Stock at one price and are able to sell it a higher price. You must of course keep in mind that the value of investments can go down as well as up. That’s why it makes sense to invest with a long term view, which will give you the opportunity to ride out fluctuations in the markets. Stocks are bought and sold on Stock exchanges which quote the value of companies.

If you want to own Stocks & Shares but aren’t sure how to invest, then our Fully Managed Investment Portfolios could be ideal. Investing in individual shares could be risky, but with our Portfolios your risk is diversified across thousands of holdings. With this level of diversification, the value of your money isn’t tied to just one stock. Our investment team make the decisions on your behalf, investing in funds of Stocks & Shares. These funds are blended in our Fully-Managed Investment Portfolios. Fund partners we work with include UBS, Allianz and Goldman Sachs Asset Management, with our Investment Team making the decisions on your investment.

By holding such a wide variety of Stocks & Shares in the funds in our Portfolios, your risk is diversified. You are invested in thousands of holdings, on a worldwide scale. We have access to 9,000 experts in 200 worldwide locations. Your eggs aren’t all in one basket.

With our Fully Managed Investment Portfolios, you can benefit from the potential growth advantages of holding a wide variety of Stocks & Shares. Take our online assessment today to see if this investment is right for you.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.

Personal Finance