how to calculate my investment?
im 20 and would like to invest some of my money into the FTSE stockmarket but i would like to know the calculation on finding out how much my investments is worth at that time of viewing, also working out the formula?????
please help me thanks!!
HOW DO I DO IT! MIND BAFFLED
example: ( base the calculation on this example)
I WILL INVEST £2000
Symbol
ABF.L
Name
ASSO BRIT FOODS
Last trade
661.50 p Apr 17
change
12.50 (1.93%)
volume
1,667,306
thanks for taking the time to answer my question
I always find it’s easier if you stop thinking Shares and Stock Exchange and start thinking Oranges and Fruit Market.
On Apr 17 ABF Oranges sold at 661.50p down the Market, this was 12.5p (or 1.93%) more than the previous sale and the number of Oranges that changed hands on that day (volume) was 1,667,306 ….
So there you have it .. plainly if you went down the market on the 17th you could have purchased Oranges at about £6.60 … after all, there were over 1.6 million available so plenty for everyone …
What does this tell you about the price of Oranges today ???
Well on the 17th they were going up (12.5 p) so you might expect them to be a bit more expensive now .. however for all you know, pesticide has been found on the Oranges (‘hole in the accounts’, ‘breaching banking covenants’) and the price could have collapsed … alternatively a new Orange drink may just have come onto the market and the price of Oranges may have jumped up …
In order to ’spread you risk’ (i.e. avoid loosing everything when the Government nationalizes soft fruit (aka the Banks) it’s usually recommended that you purchase a mix of items down the market .. so as well as soft fruit (Oranges etc), buy some clothing, meat, kids toys, handbags etc. …
If you BUY you will always pay a slightly more than if you SELL (this is known as the ’spread’ and is how the wholesalers (‘Market Makers’) make a profit)
When you buy Oranges you will have to pay some FEES .. (Brokers Commission PLUS Government Tax known as ’stamp duty’) ..when you sell, you just pay Brokers Commission. The Fees could be as low as £5 each time and the Tax is 0.5% … even so, it’s not ‘free’ to buy & sell.
Fees means it’s usually not worth dealing in less than £500’s worth of any item per trade .. and to ’spread your risk’ it’s usually recommended you hold at least 10 different shares ….
With only £2000 to invest you might be a lot better off buying an INDEX TRACKER (via an ISA).