Buying stocks and shares in U.K, or overseas companies, or any tradable entity is, in theory, straightforward.

In practice, it is a little more complicated.

Before the City of London’s financial heart (known as the Square Mile) had it’s Big Bang revolution in 1986, when it became effectively de-regulated, buying stocks and shares was a comparatively upper middle class activity.

The City was often seen as being there for a small set of professionals who ran the stock exchange as their own personal wealth creator. Many of the sons of well-to-do families became stock brokers as a respectable career choice following a good school and fine University.

Then along came Margaret Thatcher with a vision that share ownership should be an ambition of the masses and the City was de-regulated. In simplistic terms the middle class boys moved to advising large financial institutions and rich private clients on their portfolios, and in came the East End barrow boys, who saw trading shares as more fun than selling apples and pears down the local market.

British Telecom was one of the first to be ripped from its near dormancy to a listing on the London stock exchange and in the process made a lot of people quite a bit of money. The big U.K. utilities followed and suddenly most of the U.K infrastructure was up for sale.

The City had changed for ever and for many, this new sense of stock markets being a route to great wealth via ever more complicated trading entities and techniques, rather than for maintaining a balanced stock portfolio, is the source of the current economic woes.

Okay, that’s the history lesson, but it does explain the fact that everyone is potentially allowed to trade anything quoted on stock markets, whether in the U.K. or overseas.

Of course, there are various ways to do it. And funnily enough, if you own a personal pension, whether for retirement, or to support a mortgage, it’s likely you already own shares, although those shares will be handled on your behalf by one of the big City fund managers.

So, if you want to buy shares, you have to use a stock broker, either one of the ones found in London and various locations throughout the U.K., which can handle transactions face-to-face, or online, or you can use one of the many online services.

Do some research though to ensure you are using a regulated firm and one with a good reputation, and avoid a U.S. invention called the boiler shop, which are high pressure sales outfits often selling shares that don’t exist.

And by using a reputable firm, or well-known online service, you will have some protection and maybe some advice as to what to buy and sell.

Good firms will also want to see that you can afford to dabble in what is, effectively, a glorified casino. And in this day and age, the old phrase of “…my word is my bond…” has long gone; now its strictly cash and carry.

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For More information on specific Banks use these links

 

• Alliance & Leicester
• Barclays
• Capital One
• Child Trust Fund
• First Direct
• HSBC
• Post Office
• Tesco Savings

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Tags: Big Bang Revolution, British Telecom, Margaret Thatcher, Stocks and share, Stocks and shares

The stock markets are filled with opportunities right now. The slump in stock prices isn’t a reflection on the underlying companies; it’s a reflection of the need to raise capital and the desire to avoid risk. The tide in the stock markets has well and truly gone out….but it won’t stay out forever.

Take Japans Nikkei index. Today, almost 20 years after Nick Leason worked his magic, the index is still down over 75% from its 1989 high…and share prices have recently fallen to levels that many are calling absurd. The average price of the index in total is slightly UNDER one times book value. This is just a ridiculous state of affairs for one of the most advanced economies in the world. But with the memory of the 1990s rout still fresh in the minds of many Japanese investors, the words “it can’t go any lower” have been banished from the collective consciousness for at least a generation.

They know the painful truth….stock and property prices can fall further than anyone thinks possible in the after math of a bubble…a lot further. Yet, with undoubted fear across many global markets, this is a once in a lifetime opportunity to pick up shares at prices not likely to be seen for a generation….and it’s not only in Japan. In emerging markets from Russia to Malaysia to Brazil, valuations are completely out of whack with normality.  The growth stories may have stalled in these economies, but the longer term demographic and developmental trends are still firmly in place.

While the future may not be bright in the stock markets of the western world, soon emerging market economies keep their savings for themselves and invest in their own productive capacity. They will redirect their cash away from the US and other western economies that desperately need it to keep their consumption based economies from total collapse.  Once they do, the west will cease to be a drag on the global economies and the emerging markets will witness a boom never before seen in the global economy. Grab your share, before it’s too late.

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Tags: Bargains, Econonmy, Nikkei, Property Prices, Stock Markets, Stocks and share, World Economy

You might describe entering into the stock market during the ongoing and ever deepening global financial crisis that we are going through as leaping through a flaming hoop into a lion’s den. However for the objective among us, this may be the best time to begin accumulating a stock portfolio, as many of the large public companies are undervalued, and for the brave, but not necessarily the reckless, this may be the right time to take some calculated long term risks.

If you have decided that now is the time to stand up and be counted, and you have some capital that you can afford to tie up long term, then the next stage is to find a stock broker who can help you. These days, like almost anything else, the best source for information and assistance is on line. If you think that you are capable of choosing which stocks will give you a return in your investment, or have knowledge of company that is about to be floated on the stock exchange, and you want in on the ground floor, then you should follow your instincts and invest.

If you are less than sure, then you can seek advice on line at very little cost. If you are one of these people who like the comfort of dealing with a real person, you might find an investment counselor at your local bank, who can not only provide with some real grass roots advise on which stocks to go for and spread your risk as wide but not as thin as possible.

Nowadays banks can also assist you in the process of buying stocks, and of your portfolio is going to be relatively small and static, then it might well be worth your while to let your bank act on your behalf.

If, on the other hand, you want to invest a considerable sum, then it will be more cost effective and less complicated, at least from the outset, for you to find an independent stock broker to handle your portfolio, especially if you expect to be buying and selling shares on a regular basis.

Once you have found your feet a little as a trader in stocks and shares, you will certainly find it more efficient as well, faster and cheaper by dealing direct online. After all your stockbroker is as he sounds, someone who makes his profit through buying shares on your behalf.
So by cutting them out of the equation, you can not only save their fees but also speeded up the entire process. Many find it exciting to have the control of their money, and making snap decisions to buy and sell stocks at the click of a mouse.
However be warned that making snap decisions regarding buying or selling stocks can be costly if things don’t work out according to plan. Never allow yourself to forget that you are investing for the long term, and to take a deep breath and two set backwards for further re-assessment of a stock that cannot fail.

Soured form Bank Accounts

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Tags: Accounts, Bank, Banking, Money Management, Savings, Stocks and share