Frequently
asked questions
 How Much Should I Invest?
Draw the line between
investing sensibly and gambling by working out what you can
essentially afford to lose. Keep to a manageable
amount that wont interfere with your daily needs and responsibilities,
and never ever depend on the money you are investing as there
is always the frightening chance that you could lose it all.
What
are some of the pros and cons of investing?
The pros obviously mean that you can make a lot more
money by investing than leaving your money in the bank.
Many people
also get a certain thrill when investing in the stock market,
and enjoy the perks in owning shares of a well-known company.
The
con, on the other hand would be that an investor could
just as easily lose his money. Of course, if one invests
in the “blue chip” companies, the risks are
considerably less than that of a smaller, more lucrative
company, but
still, keep in mind that there is ALWAYS a risk in investing.
What are some of dangers when investing?
The world of investments can be an exciting and profitable
exercise yet at the same time cruel and full of risks.
Of course, just because a company or deal sounds profitable,
doesn’t
mean it’s a scam, but remember to always do your
research before parting with your money.
Warning bells
should ring when:
- The investment seems too good to
be true.
- The investment offers significantly higher
returns than average.
- The investment has anything remotely
to do with “pyramid
schemes” or other methods of multi-level
investments.
- The person giving you a “tip” or
getting you to invest is on commission or
stands to profit if
you put in your
money.
Could I lose all my money when investing?
Sadly, the answer is yes. The bigger the risk, the
higher the profits may be, but the downside is
equally as large.
Choose
an investment strategy that suits your personality
and budget.
Should I use a professional like a
stockbroker or money manager when investing?
If you have confidence in your own abilities and
have the time to keep track of the fundamentals
(such as
the markets),
investing
on your own can save you money and give you more
control of your funds. When hiring a professional,
you pay
for their expertise,
knowledge and experience, a significant advantage,
especially if you are new to investing or do
not have the time or
inclination to continuously keep track of things.
Generally speaking, if you find a broker or
fund manager whom you trust, it is probably wiser
to enlist their
services and resources . They should, in any
case, still look to you for any major decisions
and offer their advise
on the best options available. Remember that
it in their
best
interests to make you money
as it is how they ultimately make theirs.
How do I keep an eye
on my investments?
There are several ways to do this:
- Check the market’s daily reports
from newspapers, television or the internet.
- Check the market-prices
and news throughout the day in “real time” on
Teletext , Ceefax or your cable television channel.
- Read and watch programs on the latest news
in the financial world and the particular
area or industry of your investment.
- Look at share
indices and prices, such as the FTSE.
- Keep in close contact
with your broker and/or money manager.
Is it possible
to
complain about a company on the stock exchange?
Yes. If the company is listed on the LSE, you may contact
their complaints department:
Online: www.fsa.gov
Or at the following address:
Regulatory Complaints & Enquiries
Trading Services
London Stock Exchange
Old Broad Street
London EC2N 1HP
Telephone 020 7797 3523
NASD have an online form to fill in
on their website http://www.nasdr.com, and it's their recommended
way to file a complaint
against a company, though they
do have a form you can print off if you prefer.
Sites
are available for all the regulatory bodies so check out
which one your chosen company is registered
with, and
follow their complaints
procedure
if
necessary. |
