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Have a question related to the stock market? Here is your chance to ask our experts. While we can't guarantee to answer all questions, feel free to browse through the hundreds of questions answered already.
somewhere you mentioned an oil company with the symbol RON but I can find no ref on the ASX company info site. Can you help?
We're not aware of a company with the ASX code 'RON'. One oil company our parent publication The Intelligent Investor has been keen on recently has been Roc Oil (ROC) so perhaps this is the company you mean.
I would like to try day trading but only have a small amount to start with. What is the minimum trade I can make and who will trade small amounts on line.
As long-term value investors, we would discourage day trading. Unless you're extremely experienced, are able to watch the market constantly, and have a large amount to invest, it's a great way to lose the money you've saved. Still, if you wish to try it, any internet broker will be happy to take your money - most charge between $20 and $30 for a trade. Generally, you wouldn't want brokerage to be much more than 1% to 2% of your transaction value i.e. about $2,000 to $3,000 is probably the mininum you should invest. If you trade much less than this, brokerage is going to wipe out a fair proportion of your profits (if you make any).
I would like to know if I can buy shares for my kids as an investment for their future, and what are the tax implications if the account in is in my name intead of theirs. And if the account is in their name when I sell or trade the shares, are they subject to tax etc. Would really appreciate some guidance on this subject.
It is not possible to buy shares in a minor's name. You will have to open an account in your name on their behalf (see our other Q&A on this topic for the format). Please consult your tax adviser for information on the tax implications.
I have so many questions , can I just keep sending them in? Also would you profile Argo for me from a Value Investor perspective then I can start applying criteria correctly
As New2Shares is a free service, we must limit the number of questions we answer unfortunately. The odd question is OK, of course. If you're interested in learning more about the sharemarket and listed companies, you may want to consider subscribing to The Intelligent Investor - from our records I understand you have received a free trial so hopefully that will give you some idea of what we are like. We regularly profile Argo in The Intelligent Investor. Finally, there is more educational material on The Intelligent Investor site under the 'Investor's College' tab - all our past articles from that section of the newsletter are free to non-subscribers.
I'm new to the share market and was wondering, when I want to sell some shares do I have to wait for someone who wants to buy them ? If I have a stock that is starting to tumble and everyone is getting rid of that stock does it mean I could miss out on taking a profit and maybe end up with a loss ?
Yes. A transaction can only occur if a buyer and a seller agree on a price in the market for that stock. You may want to open an internet broking account to get an idea of what that market looks like - the 'market depth' screen will list buyers and sellers. If a stock is falling, you own it, and there are not many buyers, it can be difficult to sell, yes. For that reason, if you are new to the sharemarket, it is probably a good idea to stick with stocks that are very 'liquid' (ie that always have lots of buyers and sellers in the market). These are usually larger, lower risk companies.
Why does the Australian market generally follow the American market even if the fundamentals in Australia do not change?
It is a little strange, we agree. We suspect it has to do with local investors wanting 'guidance' from somewhere, so they look to the world's largest stockmarket. It makes sense that our stock valuations have some relationship to other markets in the long term, though. If our stocks were very cheap compared to America's then over time ours should rise as people realise that fact. Also, economic events that affect the US may well affect Australia in the long run, too, which again explains why our market tends to follow the US. In the short term, though, there is no sensible reason why we follow the US. And, actually, the short term link between the Australian market and the US market has been declining over time. There has been less of a linkage
The frequent answer to investor concerns about a company is that shareholders own the company and can vote against any aspect they dislike. How can a shareholder have any influence when the bulk of stock is usually held by management/super funds who it appears do not vote very often?
You are right that a small investor does not have much of a say when much stock is owned by much larger shareholders. That's why we prefer to hold shares in companies where we agree with what management are doing. The analysts at The Intelligent Investor, for example, actively seek out companies for investment which have shareholder friendly management that acts in the best interests of its owners. In other cases, the only real option for many small shareholders is to sell your shares.
Is there a chart that simply shows the All Ords or S&P? In Macquarie Directrade, I can get a 3 year chart for each stock. On ASX I can get each stock and a market chart behind it. But I want to look at the highs and lows of the MARKET AS A WHOLE. E.g. Try to find a pattern for when it is cyclically high and low.
We're not really aware of charting information I'm afraid. You might want to speak to the ASX on 1300 300 279 to see if they can provide you with a chart. As per the information on our website, we prefer to analyse the underlying company and believe chart movements are of little value.
Where do you find historical data on company performance - I am interested in performance over the last 10 years of some of the ASX 200 companies.
The easiest way to get information on a company's performance is to go to its annual report, or the ASX announcements. Some companies do provide 10 year summaries of their performance in their annual reports(usually the best ones!) If you are looking for a summary, though, Huntley's Shareholder book summarises information on the top 500 companies for the past five years. Be aware that this information is of limited use in selecting stocks, although it might highlight some companies for further investigation.
Can a company just keep issuing shares to an unlimited number?
Theoretically, yes. But if a company proposes to issue more than 15% of its current issued capital in one year, it needs to seek approval from shareholders, which helps check management from making too many silly acquisitions financed by shares, for example.
