Originally posted by Agenda:
Anyone here play in the stock market? I always hear aunties say in chinese
"yi gu jiu shi zheng qian kuai"
meaning like 1 share is like thousands?
The shares in our local stock markets are traded in denominations of a thousand, whereby their called "lots".
Taking the example of SingTel which is currently trading at the market price of $3.90: The minimum cost for a single bid of SingTel stock would therefore be $3.9K ($3.9 * 1000) for a minimum quantity of 1 lot.
Note: The price is excluding various transaction costs, E.g. Brokerage fee, SGX Clearing Fee, GST and Misc Fees.
Originally posted by Agenda:
I do watched CNA in the morning and I take note of the market prices for share price. big firms like microsoft have like $300 value or so.
Anyone know how it works?
Your referring to the listings on the stock markets in the United States. They have different stock pricing structures over there, with regards to the quantity of odd lots and round lots.
Originally posted by Agenda:
And what are the things I need to know when first venturing into the market?
Well, you can begin by getting yourself acquainted with our domestic bourses, namely the SGX. Understand what are the basic functions of capital markets in general, identifying the various brokerages that are available in the market and as well as the wealth of knowledge with regards to picking the correct stock (fundamental analysis, technical analysis etc)
After which, you will have to ask yourself 3 fundamental questions before venturing into the stock market:
1) What do you intend to gain or what are your goals from investing in the markets?
Some people invest in the stock markets to provide themselves with a long-term wealth plan which hopefully accumulates to a nice retirement nest egg as they reach their golden years. Others see the market as a tool for increasing their income. You will have to identify your goals as it would dictate the theme for your investing endeavors, for the short run at least.
2) What is your risk appetite?
Investing in capital markets presents a very real danger of you loosing your precious capital, time and energy. The markets can be very volatile and are subjected to various macro-economic risks that implicates countries all over the world. The stomach to endure the roller coastal price fluctuations during times of uncertainty is a necessity. In addition, different companies have vastly different risk levels, which one has to take into account for.
3) Whats is your required rate of return and amount of disposable capital available to you?
As stated above, this should be pretty clear cut to most people. No doubt everyone demands the highest rate of return possible to him/her, but higher returns would equate to assuming a higher level of risk (refer to (2) ). And the amount of disposable capital that you have for investing should be taken into consideration as well, as it will determine the stocks you buy and the strategies you adopt.
