Stock Investing

As with all investing it is important to know the risks involved, All investments carry different amounts of risk and this should be carefully considered before making any investment. Never invest more than you are willing to lose.

A Stock is a security that represents a partial ownership of a company. Stocks are often issued by companies to build capital (money) and in return give investors partial ownership of their company and in some cases partial ownership of their profits in the form of dividends.

The Risk of losing money with Stock Investing is contributed to supply and demand similar to other assets, if the demand for a particular stock is high the stock price will grow, and if the demand for a particular stock is low the price will fall. If a company was to go bankrupt the stock price would ultimately go to zero due to lack of demand. ETF's are a good way to manage risk by diversifying your investment across multiple companies. 

An ETF (Exchange Traded Fund) is a collection of individual stocks, they can be purchased much like an individual stock. Owning a share of an ETF represents the partial ownership of every stock contained in that ETF. There are many different ETF's for example: The "S&P/ASX 200" consists of the top 200 companies in the Australian Stock Market. ETF's lower the risk two investors by diversifying across multiple companies.

In terms of where to start with stock investing it depends on what suits you, for the average investor ETF's are a great way to invest in the stock market especially if you are not interested in doing extremely detailed research into each company you invest in. In most cases ETF investors often match or outperform the returns of individual stock investors. 

There are many platforms and apps which can be used when it comes to Stock investing and the choice is up to you and what works for you.

One of the main benefits to stock investing is that it can be one of the most passive types of investments and can be really easy to automate.