When we heard the word shares or the stock market, the first thing that hit our ongoing thought is “RISK”. It occurs mostly with the beginners or new investors who step in the investment world. Though, it is complex because it is not a grocery product that you can easily purchase with money.
It is imperative to understand the concept and how you can purchase them. However, before it, makes sure you have enough money to purchase Irish Shares. You have to invest money and follow that it does not negatively affect the current financial condition.
Now, let’s start with the basic concepts.
What Is Shares In Investment?
It is imperative to know the definition of the shares for beginners or first-time investors. First, comprehend this in a nutshell.
The word share itself shows a part of something. Here, it is a part of a firm that is available in large numbers. You can buy them at an ongoing price. The price of the shares is not fixed, and it can fluctuate because it relies on the stock market.
How the stock market performs, decide the price of the stocks. Suppose you have purchased a share (you will read the process further) at XYZ price, now suddenly due to some rule, the stock market gets a boost, and the cost of the stocks got high, and you can make a profit.
From the current situation, you can understand better that those who invested in the pharmaceutical industries get more than 10 times as dividends what they have spent.
How Many Types of Shares in the Market?
There are many shares available in the market. But the most promising are:
- Common Shares
It is a kind of shares that provide you the right to become a part of the decision making process. Whenever a company about to brings some choices or changes, you can offer suggestions and stand as a vote. If a firm makes a profit, then according to the shareholder capability, you will receive the returns.
This whole process contains one risk that is “Losing the Funds”. If the company suffers from any losses, then you may not be able to recover the funds. This type of funding is not suitable for the long term because you don’t have the position of the company in the coming years.
- Preferred shares
If you want to play safe, then preferred shares are for you. The only difference between preferred shares and common shares is that, in the case of company shutdown, you will not going to lose money, hence the name. As a first time investor, you should choose this method to learn about the share market.
These are the two types of shares that are promising to you. You can select as per your knowledge and experience.
Now, let’s have a look at the most vital thing that is how to buy shares in Ireland.
Steps To Buy Shares in Ireland
There are certain things that you have to perform while purchasing the shares.
- Open a DEMAT account
The first step for you is to link your investment account with the bank. The reason behind this whole purpose is to make the withdrawal and invest money directly from the account. You can close the account, and sell the shares. The divided will automatically move to your registered account.
It is easy to link if you find anything complicated then you can contact the relevant company. The firm will offer you a step by step guidance.
- Approach A Stockbroker Who Can Make Investments
You cannot directly sell the stocks or shares from or to the market. You have to include the stockbroker, who will do the task like selling and purchasing on behalf of you. They may charge a small amount, and that would be in the percentage of the dividend and profit you will get from the shares.
- Choose The Relevant Option Of Investment
The stockbroker will offer you three ways of investment:
- Discretionary: Stockbroker will work according to you, and sell & purchasing of shares both.
- Advisory: Stockbroker may provide you with some advice and suggestion.
- Execution: No advice from the broker sides and just an ongoing process will start.
These are the three methods; you can go with one according to your needs.
- Get The Professional Advice
There are many brokers present who can help you to invest money. But, which one is right? For this, you have to get a professional investor’s advice. They can suggest you about the best ones because many brokers charge the hidden cost or may the commission get high.
So, consider everything, and after the analysis, you have to come up with the investment terms. If you overlook the steps, then you may get in the trap of looses, and it will directly affect your finance. It is vital to direct more in the case when you are going to invest a large sum.
