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Starting Out in Shares the ASX Way, 3rd Edition

Book Description

An introduction to share investing—and whether it's right for you

The ASX investor education team has been providing the essentials about share investing for over 30 years. The latest edition of Starting Out in Shares the ASX Way is your one-stop resource to understanding what shares are—and how to buy and sell them. Inside, you'll have the pros and cons of shares over other investments explained. Many people don't know how the sharemarket actually works—the ASX team takes you through this. In easy to understand language, they will cover the process of investing including: effective ways to manage a portfolio, tried-and-tested stock selection methods, how to set yourself up for share investment, how to analyse shares and their prices and much more.

If you want to explore the opportunities of share investing, you've come to the right place.

  • Serves as a resource for those looking for more information before getting started in the sharemarket

  • Fully updated with the latest information for 2015

  • A glossary of ASX sharemarket terms is provided at the back of the book

  • If you're a would-be or beginner investor looking for trusted information on how to begin buying and selling shares on the Australian market, Starting Out in Shares the ASX Way will give you the confidence and knowledge you need to succeed.

    Table of Contents

    1. Introduction
    2. Part I The basics of the sharemarket
      1. Chapter 1 Getting ready to invest
        1. Saving versus investing
        2. What is your current life situation?
        3. Current financial position
        4. Goals
        5. Diversification
        6. Are you ready to start investing in shares?
      2. Chapter 2 What is a share and what is the sharemarket?
        1. What is the sharemarket?
      3. Chapter 3 The main investment areas: cash, fixed interest, property, shares
        1. Investment considerations
        2. Characteristics of the asset classes
        3. Overseas markets
        4. The importance of diversification
        5. Inflation
      4. Chapter 4 The benefits and risks of shares
        1. Benefits
        2. Risks
      5. Chapter 5 How to buy and sell shares
        1. Stockbrokers
        2. The process of buying and selling shares
        3. The trading process
        4. CHESS statement explained
      6. Chapter 6 Your first share trade
        1. What does the market look like?
        2. Price, volume and order type
      7. Chapter 7 Buying shares in a float
        1. The product disclosure statement
        2. Five questions to ask
        3. Who is involved?
        4. Why is the company raising funds?
        5. Finding out about new floats
      8. Chapter 8 The nuts and bolts of the sharemarket
        1. Types of securities
        2. Rights and bonus issues
        3. Market announcements
        4. Codes, codes and more codes
        5. ASX trading hours and market phases
        6. Status notes
        7. Off-market transfers
        8. Reading share price tables — common terms
      9. Chapter 9 Following the S&P/ASX indices
        1. Standard & Poor’s index services
        2. Other Australian indices
        3. How S&P/ASX indices are calculated
        4. Your portfolio versus the index
        5. International indices
        6. Sharemarket analysis using indices
        7. Index movements
        8. Upward trend
      10. Chapter 10 Managed funds
        1. What are managed funds?
        2. Why use managed funds?
        3. Drawbacks of managed funds
        4. The managed fund family
      11. Chapter 11 Gearing and margin lending
        1. The risk of losing more capital
        2. Margin loans
        3. Buying shares via a margin loan facility
        4. Double gearing
        5. What to avoid
    3. Part II Making informed decisions – strategies and approaches to investing
      1. Chapter 12 Why you need a strategy
        1. Time and volatility
        2. Effective diversification
        3. Understanding correlation
        4. Consistency and discipline
        5. Appropriate asset allocation
      2. Chapter 13 Fundamental analysis
        1. Intrinsic value
        2. What are you trying to learn about the company?
        3. Value investing
        4. Market ratios
      3. Chapter 14 Technical analysis
        1. Anyone can use charts
        2. Classic technical analysis
        3. The next step
        4. Using indicators
        5. Combining tools
        6. Triggers
      4. Chapter 15 Examples of investment strategies
        1. Strategy #1: Upside potential
        2. Strategy #2: Projected price range
        3. Strategy #3: A longer term approach
        4. Strategy #4: A medium-term approach
        5. Strategy #5: A longer term approach using dividend yield
        6. Strategy #6: A longer term approach using price/sales ratios
        7. Investment gurus
    4. Glossary
    5. Index
    6. EULA