Getting Started in Investing
As a potential investor you first need to make some serious decisions on what you want to accomplish with your money and when you want to accomplish it. Think about it for a while as every investment opportunity may not suit your needs. Suitability may well depend on your financial situation, your investment goals, how much time you have to reach your goals, and your tolerance for risk. Always be sure you understand your investment options before you make a final decision.
Getting the Advice You Need
Great financial advice is an important first step towards successful investment planning. A good place to start is to work with a financial adviser or stockbroker to help you make informed decisions. Your first step is to choose an investment broker or stockbroker. To be a registered broker in Barbados the company must first be a member of the Barbados Stock Exchange.
A stockbroker or broker is the direct link between you, the investor, and the company, ABC Ltd, whose shares have been listed on the stock exchange. The stockbroker provides investment advice and will help you decide if the purchase of shares is the kind of investment you want. When choosing a stockbroker you need to have confidence in, and be comfortable with, both the stockbroker and the company who will handle your investment. Ask questions until you thoroughly understand what you are investing in and provide all relevant information to assist your broker in giving you the best investment advice possible.
Stockbrokers charge a fee called commission, each time you buy and sell a stock. The commission charged is agreed upon between you and the stockbroker. Commissions are used to pay the broker’s salary and for the services the company provides. It is advisable to have a written understanding between yourself and the stockbroker.
How Risky are Share Investments?
Investment values can fluctuate and cause you to lose money. This is a reality of the investment markets, and it’s the responsibility of you and your adviser to ensure that the investments you choose are suitable for your risk tolerance and personal circumstances.
You have made your decisions on the amount of money you will invest, the type of investment you will make and the time lines in which you hope to receive returns on your investments. It is time to go a step further to protect your investment. As a savvy investor it is important to understand terminologies and be on the lookout for “get rich quick schemes”. Don’t rely on insider information. If you trade on a tip from someone with insider information, you can be guilty of insider trading.
This above was a series of investment tips geared towards helping prospective investors make that first step towards wealth creation through investing. We expect that after reading this, prospective investors may have more questions all of which can be answered by the helpful staff of the Barbados Stock Exchange Inc. – 246.436.9871 or firstname.lastname@example.org
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