Share is a kind of ownership in business activities. A part of the profit made by the companies, which operate in the Australia share market gets distributed amongst the shareholders as dividends. The value of the shares increases in the process. History reveals that the Australian shares have over the years performed better than other forms of investments in the long run.
This is the reason why the Australian companies have also benefited because they have been able to use the investor’s money to finance and further develop their business. Franking credits are tax credits. After paying taxes on their profits, these franking credits are added to the dividends the companies pay to their investors.
These are very useful in offsetting the taxes payable by the investor on other incomes. The shares that are held for more than 12 months in the Australian share market qualify for a 50% discount on any tax payable on capital gains. Flexibility is a great advantage in Australia’s share market.
One can get his money within three days of selling his share. Other investments may take time to sell and get back the money. The liquidity in the share market of Australia is quite high. Even within the market, some shares can be traded quicker than the others due to their increased liquidity.
In the share market in Australia, one can decide easily and quickly on the amount of money invested. This gives a lot of control over one’s finances. This is because of the efficiency of the stockbrokers of Australia who can advice on the profitability of buying and selling shares. Share trading in Australia is now much cheaper because the stockbrokers are making use of new technologies to provide better services. The cost of buying and selling shares can be as less as $25 in the Australia share market. In this context, mention must be made of the Australian Securities Exchange (ASX), which is the premier stock exchange of the country.
The only thing that needs to be remembered in the Australia share market is its volatile nature in the short run. The prices of individual shares can move up and down sharply. Therefore it is essential to monitor the performance of the shares.
Last Updated on : 26th June 2013