How to get started.
Sure, thinking of some of the prices ranging between $100 and $2000+; this may at times discourage investors because, like, maybe it’s just too expensive!!
But is it really? Lets have a look ....
Through fractional shares, investors can buy a fraction of a share – even for R100 – and still enjoy the benefits of being shareholders in a company, the same as “whole” shareholders do.
Here’s an example
Do you love cake? Chocolate? Or maybe wine? Okay, well, whatever you like 😎 say instead of buying the whole thing, you just buy a piece of it - think of perhaps a piece of chocolate cake? A glass of wine instead of a bottle? Or perhaps a glass of water? 😅
Using EasyFx, investors are able to transfer funds to the US at the cost of 0.5% of the transferred amount. Funds transferred between 09:00 and 10:30 SA time will reflect on the same day. At no minimum.
When you sit down to enjoy that piece 😎 of your favourite cake, chocolate or glass of wine 🍷 – it has the same taste as the whole thing. You can choose to sell it to someone else when the market is open or choose to reserve it for later – keeping it in the fridge for future na enjoyment - na enjoyment is a trend from TikTok that refers to; every cent one receives, they should spend it to enjoy.
Shares work in much the same way. You buy fractional shares (or whole shares) and leave them in your portfolio for future dividends or profit.
When buying fractional shares, it’s important to understand that appreciation and benefits remain relative. This means if you own a 10% share of the product on the shelf, you will enjoy 10% of any increase in the piece of the product. Am I the only one thinking beyond shares but thinking of buying a glass of wine and keeping it stored for the next three years 😏? Let’s see how much you’re willing to pay for it by then🧐 Will it expire or mature in taste? 👀
Just like the example, research is essential. That’s why we have a research portal that offers investors insight into some of the companies available on the EasyEquities platform. 💪
View Research portal here or below
Buy the dip for long term gains
When share prices drop temporarily, it’s the perfect time to “buy the dip”. I mean think of it, if a store dropped the price of ice cream for a short time, you might decide to buy a whole lot and stick it in the freezer for enjoyment on a later day. This is like buying the dip – investing when the price drops to reap returns in the future.
Good reasons behind some dips
Other than a drop in price that may occur due to temporary market influence, stock prices can also be affected by corporate actions such as stock splits. This is when a company issues additional shares to shareholders, which in turn reduces the price of the share. Another “buy the dip” opportunity?
Examples of significant stock splits include Tesla, Apple in 2021, and upcoming Alphabet Inc-Cl A.
Read more Apple here or below
Read more Alphabet Inc-Cl A here or below
Stock splits are a way to increase a company’s liquidity. More shares become tradable (i.e. the ability to buy and sell increases) and it also makes shares more “affordable” for investors.
At the end of the day, it’s important to understand that when investing offshore, you’re exposed to different companies and markets. Because of the geographical location of the operations and listing of the companies, this may offer local investors an opportunity to offset risk in the long term. A combination of local and offshore investments is a good way to diversify your portfolio.