Shares

Sonray offers clients access to a wide range of Australian and International equities through our client advisory service and our award winning online platforms. We have a 24 hour dealing desk to assist with execution. 

When you buy shares in a company, you are buying a part of that company. This means you share in the company's performance in the form of profits which can be given to you as dividends and/or capital growth.  Companies generally list on the stock exchange to raise capital to finance their business or its expansion, as an alternative to having to borrow money.  You can invest in the company by buying its shares at the time they are listed or by buying them on the market (i.e from another investor who wishes to sell) after that point.

Shares are an important part of an investment strategy.  Owning shares can provide opportunities to help investors achieve long term financial goals. Being successful at investing in shares is about being informed, monitoring your share portfolio’s performance on a regular basis, keeping an eye on your goals and investment strategy and participating in ongoing education as you need it.

Benefits of investing in shares

The sharemarket provides one of the best opportunities to achieve long-term financial returns.  It’s straightforward, you don’t need a lot of money to get started, and shares give you flexibility and control. People invest in shares to make money – either through capital (share price) growth, or income paid by the company as dividends. 

Potential to outperform other investments over the long-term: Although past performance is no indication of future performance, history suggests that Australian shares have outperformed other types of investment over the longer term.

Capital growth and dividends: Capital growth occurs when the value of your investment increases.  People invest in shares because they offer the possibility that their price will rise. Owning shares in a company with a rising share price is one way to achieve capital growth.

As a shareholder you are entitled to share in the company's profits or earnings. For many investors a key criteria in selecting shares, is whether the company pays dividends and the size of these.  Companies pay dividends from their net earnings.  Dividend payments vary from company to company and it is not compulsory for a company to pay a dividend.

Tax benefits: For Australian investors, dividends are often worth more than the cash payment they receive. This is because where companies have already paid tax on their profits, tax credits known as franking credits may be attached to the dividends the company pays to you. These franking credits can be used to offset tax payable by you on other income. In addition, shares held for more than 12 months qualify for a 50% discount on any capital gains tax payable.

For more information about the tax implications of investing in shares we recommend you seek  assistance from your accountant or a financial planner tailored to your circumstances and needs.

Diversification: Many people know the saying"don't put all your eggs in one basket". The Australian sharemarket helps you to do this by offering a wide choice of companies in which to invest. There are over 2,100 companies listed on ASX. These companies are involved in a wide range of industries covering every facet of the economy. By investing in a range of companies you can spread your risk. 

Sonray also offer an alternative investment vehicle called Exchange Traded Funds (ETFs) which are basically a ‘basket of stocks’ that trade just like stocks on major stock exchanges See the Exchange Traded Fund page of this website for more details.

Ease of buying and selling: Investing in shares gives you flexibility and liquidity. Generally you can buy and sell quickly.  If you need funds quickly you can sell your shares at the current market price (which may be more or less than what you paid for them) and have the money in your hands in no more than three days. Other investments often take longer to sell.

With Sonray you can trade shares on exchanges all around the world with the same ease as trading in Australia.

Control over your financial future: You can decide exactly how your money is invested, enabling you to have a lot of control over your finances and your future. Sonray offers the ability to trade yourself via our online platforms or you can speak with one of our financial advisors about what shares to buy and sell.

Further Education 

Sonray offers free online education to help you trade with confidence. 

The Australian Stock Exchange provides free general education:

• Getting started with Shares
• Interactive Online classes to help build your knowledge.