Stocks and Shares


SWhile you are soaking up the leftover turkey, mince pies and chocolate, you might start thinking about your aims and objectives for the New Year, whether it be personal and financial. Maybe one of your goals for next year should be to invest in new financial opportunities such as stocks and shares?

Shares are also known as equities; one share represents a share of ownership in a company and these shares can be listed on a stock exchange. When you purchase a share, you are in fact purchasing a small stake within that company. You become a joint-owner of the company, alongside other shareholders and are able to vote on certain decisions the company makes. The company is run for your benefit.

Why invest in stocks and shares?

Research has proved that investing in shares is one of the best long-term savings investments in the financial sector. Studies show that shares tend to outperform other investments such as corporate bonds, government bonds and property. However, stocks and shares can fluctuate in value, which is why investing in shares does mean putting your capital at risk. Shares are more suited to long term investment. Like gardening, with perseverance, the fruits of your labour can be successful and rewarding in the long term.

There is the potential to receive dividends, an income, generally received from the profits the company makes each year and also capital growth, where the value of the share increases over time. These are not guaranteed however and depend on which companies you choose to invest in. You can buy shares directly from a stockbroker or trader or you can even buy shares through an investment fund.

At Philip J Milton & Company we provide a share dealing service on an execution only basis. “Execution only” is a term to describe sales where a consumer has requested a specific investment and has chosen not to receive advice. Typically, this is more appropriate for individuals who follow the markets and have some experience with the industry and managing money. If you do not know what stocks or shares you should buy, we also offer a discretionary management service where we make the decisions for you. If you would like to know more about the opportunities available then please do contact us to arrange a mutually convenient appointment. We have a team of highly qualified advisers who would be only too happy to discuss your options, with the initial meeting provided at our cost. Risk warning – please note that the value of equities can fall as well as rise and may not be suitable for everyone, at any time but particular in the short term your capital may be worth less than the original amount invested.