As part of Money Week 2013, we are running a series of articles offering basic investment advice, written by Sorted.org.nz.
Earlier this year 113,000 Kiwis bought shares in Mighty River Power. Those investors now own a small part of the company and will share in any profit it makes. However, investors in Mighty River Power will also be aware of shares' potential to drop in value - MRP shares listed at $2.50 per share and are currently trading at around $2.24
This may sound like an intimidating prospect, but the flipside of risk is reward, and if you do your homework, investing in shares can be a good way to grow your money and accumulate wealth for your retirement. Consider the share market darling Xero, whose shares listed at $1 in 2007 and are currently trading at close to $15.
Shares, also called stocks, equities or securities, are mostly bought and sold on stock exchanges such as the NZX. You can buy or sell shares directly through a sharebroker registered with the NZX or indirectly through a managed fund and a fund manager.
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