Keeping track of your shares
Managing your shares
If you own shares, it's important to keep up with how they're
performing compared to similar companies and the market as a whole.
A company's share price changes with each new piece of information
released to the market. Staying up to date means you can act
quickly to take advantage of opportunities or get out of a
potentially bad situation.
Here are some things you should do regularly to manage your
Track the performance of your
Check the price of your shares regularly to help you stay in
control. Read the business section in the paper. Keep an eye on the
company website and set up watchlists to monitor the performance of
shares you hold or are interested in. Set up a free Company Alert with ASIC and we'll email
you every time a company lodges information with ASIC, including
takeovers, buybacks, floats etc. The Australian Securities Exchange (ASX)
also offers a free watchlist feature.
Your results from shares will depend on selling decisions as
much as buying decisions. If you 'set and forget', you may not get
the best results.
Listed companies (i.e. those available on a market like the ASX)
must send any price-sensitive announcements to the market on which
they are listed.
Tracking your shares closely can also help you avoid online stockbroking
scams and company director fraud.
Case study: Lee keeps on top of his shares
Lee, 50, reads the
newspapers every day to keep up with the latest business and
financial news. One day, he sees an article about research results
from a company in which he has shares. In the article, the managing
director says their key medical research has not achieved what they
were hoping for. After doing more background reading and tracking
the company on his watchlist, Lee decides the company's prospects
have dipped. He decides to sell the shares.
Read everything the company sends
reports and any statements sent to you by the companies in
which you are invested. Takeovers are particularly important. Read
more on takeovers.
Keep your holding statements
When you buy or sell shares in a company, you will receive a
holding statement. You should keep hold of these statements as
proof of ownership and for tax purposes. You also need paperwork to
be able to work out capital gains
Identify red flags
If you are concerned about your investment, try these company
Find out as much as you can about the companies
you have invested in and stay up to date with what's happening in
the market. It can mean the difference between a healthy return and
a painful loss.
Last updated: 03 Apr 2018