In the past, the stocks of resource companies and mining companies dominated the Australian stock market, reflecting the important role of commodity exports in the national economy. However, with the continuous expansion of the economic base, the stock market has also expanded. At present, the largest sector in the market is the financial industry, including banking, insurance and property credit.
whether you are a novice or an experienced investor, you can easily enter the Australian stock market. Trading is carried out through the Information Stock Exchange Automatic Trading System (ITS) of the Australian Stock Exchange, which is convenient for inquiring the current price and market conditions of the stock.
before investing, you need to choose a stockbroker who will give you buying and selling instructions. There are a large number of full-service brokers (who advise you on what kind of securities to buy) and non-consulting brokers (who do not provide consulting services, but usually ask much lower prices) for you to choose from. You can also choose to send instructions by phone, or conduct transactions through networking. You can use a large number of online tools and information services to search for companies in Australia and follow up the market situation.
Sharing tax relief
The Australian tax system has two special features, which make stocks more attractive to long-term investors:
Dividend credit. When you receive a bonus from an Australian company, you may attach a "withholding tax" because the company has paid the profit tax for the amount. Withholding tax can greatly reduce the tax to be paid for your bonus. Perhaps because of this system, the level of dividends paid by Australian companies is much higher than the global level.
tax discount on capital gains. If you hold shares for more than 12 months, only half of your capital gains will be taxed when you sell these shares. This will have a great impact on your after-tax income.
Australia's tax laws are very complicated, and everyone's situation is different. Please consult a tax consultant for information about tax law and what is applicable to your personal situation.
four steps to get a stock portfolio
what is the purpose of your investment? Do you need regular income? Or are you looking for capital growth? What is your investment time frame? Once you know your goal, you will find it much easier to choose matching stocks.
you don't have to be an expert to create a successful portfolio, but it is extremely valuable to do some research. Your broker (depending on what kind of broker you choose) may provide you with research channels and online tools to help you find and analyze potential investment opportunities.
one of the powerful advantages of investing in stocks is that you don't need a lot of money to enter the market. This means that you can make a small investment first and learn by doing. But don't forget to diversify-
Whenever possible, immediately consider investing in a portfolio of five or ten stocks. Brokers may provide you with portfolio management tools that can be used to monitor your portfolio and track your investments.
it is important to review your investments regularly to ensure that they are in balance. Otherwise, the portfolio will gradually lose its balance, because some stocks appreciate faster than others. Through rebalancing, we can ensure that we can obtain comprehensive diversified benefits and ensure that capital will not be too concentrated in a single stock or department.