There are many stock investment opportunities to be found in Australia. Investing in stock of a company based in a different country adds diversification to your portfolio. For example, Australian stocks may not react to the same market or economic influences as a similar stock found in Europe or the United States.
Define your goals and strategy when deciding to invest in an Australian stock. Will this be a short-term trade, a hedging strategy or a long-term buy-and-hold trade?
Consider investing in an Australian mutual fund. There are funds comprised of a basket of Australian stocks. These funds will provide you with broader exposure to the Australian stock market.
Trade in a single Australian stock. For links to Australian stock see the Resources section.
Determine your level of risk tolerance. The more risk you are willing to take the greater your profit (and loss) potential.
Use your existing broker or establish an account with a new firm. Banks, investment houses and independent brokers can provide you with access to stock markets. Only registered and licensed persons have direct access to trade exchange-listed stock.
Look at alternatives places to trade Australian stock. Australian stock is listed in other countries or trading venues, such as the Australian Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange and electronic stock-trading platforms.
Discuss your stock-trading ideas with your broker.
Determine the amount of stock you wish to buy or the dollar amount you wish to invest.
Look at the current market information for your stock on the investment relations part of the company's website or through Reuters. See Resources link below.
Review the current price of your stock, the anticipated earnings per share and recent events for the company.
Enter an order with your broker for the type of stock, the number of shares to buy, the purchase price of the stock, and the exchange where you wish to purchase the stock.
Receive a confirmation from your broker once the stock has been sold. This should include details at which your trade was executed, such as purchase price, quantity of shares bought, and commission charge.
This document serves as a guideline. Always check with your accountant, financial adviser or brokerage manager to determine the tax implications of a trade.
Never risk more funds than you are willing to lose. There is never any guarantee that a stock will increase in value.
- This document serves as a guideline. Always check with your accountant, financial adviser or brokerage manager to determine the tax implications of a trade. Never risk more funds than you are willing to lose. There is never any guarantee that a stock will increase in value.
Deb Katula has written and researched for Societe Generale, FIMAT, Nikko Securities, Chicago Mercantile Exchange and Arthur Anderson. She holds an MBA in economics and finance from the University of Chicago; a Japanese language fellowship from Harvard; and a Bachelor of Arts in business/psychology/Asian studies from Augustana College.