In today’s world, there’s a lot of information about investing out there. From podcasts, to blogs, to financial news, to social media - you can ask a question and get a dozen different answers almost immediately.
We generally see this as an immensely powerful thing. You are able to be more financially informed than ever before, learning and having access to information previously closed off from retail investors. But it can also be quite overwhelming if you don’t know where to start.
This is about what type of investing you can currently do on Lightyear, but don’t forget there are a lot of other places to put your money too like ISAs, bonds and more. The key to growing your wealth is diversification - essentially, don’t put all your eggs in one basket.
A stock represents a unit of ownership in an individual company. Think of a company like an enormous pizza. An investment in that company gets you a slice, which you can make bigger or smaller by investing more or less.
The value of the stock is mostly defined by how well the company is doing today or how successful people believe it could be in the future. Investing in your favourite companies can be a personally rewarding thing. Think the quality of Netflix original shows has massively improved recently? Maybe buy a Netflix stock. Loving what Nike and Adidas are doing with recycled plastic into the new trainers you just bought? Why not consider buying a share as well. Wondering what you can do to invest in a better future for the planet, take a look through the green energy stocks available.
Individually investing in companies on the public markets also means you may receive dividends if the company succeeds, and in some cases you might even have a vote in company decisions.
It’s worth remembering though that investing in stocks is considered relatively risky in the investment world. The markets are volatile - the past twelve months have definitely shown that - so your investments can go up and down in value pretty swiftly. The volatility is based on a range of factors like global events, the company’s latest financials or even just the general sentiment from shareholders.
As with most investment asset classes, the riskier the investment the greater the potential returns. So in general, stock picking can outperform other investments as the returns compensate for the greater risk. But don’t forget you can be exposed to losing your money too - especially if the individual companies go bust.
What can I do on Lightyear, though?
On Lightyear, you have access to over 1,000 global stocks. Predominantly the US markets (NASDAQ and NYSE), with global stocks available through ADRs (American Depositary Receipts), you can invest in all the companies you know and love from Apple, to Spotify, to Alibaba.
This is the first product that we're launching to UK customers. We're at the very beginning of our journey to make investing better for everyone in Europe, so watch this space for new products and features as we grow.
As with all investing, you may get back less than you put in. Your capital is at risk. Be sure to conduct research on assets that you wish to invest in. Lightyear does not provide investment advice. If you are unsure about anything, please seek financial advice from an authorised advisor.
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