Shares - quick and simple request.

Tokyo_8

Got all excited had a look and it looks like Iweb don't do anything at weekends - so I'll look to create an account on Monday!

As I said I'm on HL and was looking for an alternative - you've helped me find one!

I know I'm taking the mick, as you've already helped enough, Just to ask one last question, could you just explain the Stamp duties on purchases!

Many thanks for your advice again - good luck with your investments!

ColdIron

At risk of muddying the waters, you could plug some number into this link
http://www.comparefundplatforms.com/

steelbru

Tokyo_8 wrote: »

Got all excited had a look and it looks like Iweb don't do anything at weekends - so I'll look to create an account on Monday!

I know I'm taking the mick, as you've already helped enough, Just to ask one last question, could you just explain the Stamp duties on purchases!
!

iWeb's website is normally available at weekends, seems to be down for maintenance today though

Stamp duty - what more do you need to know, than what I previously said ?
"There is also stamp duty, a tax payable to the government, of 0.5% which is payable on the purchase only, not the sale.
The platform, ie x-o, will charge this and pay it to the government, no need for you to record it on tax return or anything."
Some more info : https://www.gov.uk/tax-buy-shares/overview

Worked example : You buy 1000 shares, costing £1.00 each.
Stamp duty payable is 0.5% * £1000 = £5
So total cost is £1,000 + £5 stamp duty + £5 dealing fee for iWeb, ie total of £1010, so your 1000 shares effectively cost you £1.01 each, not the advertised price of £1.00.
If you only bought 100 shares, then cost would be £100 + £0.50 stamp duty + £5 dealing fee, ie £105.50, so shares effectively cost £1.055 each
etc

Tokyo_8

yeah sorry - fair enough wasn't thinking straight! apologies!

and thanks coldIron for the link

redpete

Tokyo_8 wrote: »

I've seen something I wouldn't mind buying and they are 8p a share.

I was thinking I would like to buy some shares I been noticing in the digital/technological areas that go for around 50p area!

Excuse me saying this but your concentration on just the price of individual shares betrays a basic misunderstanding of how shares are priced.

You could have two companies each worth £10 000 000. Company A has issued 1 000 000 shares and these shares are priced at £10.00 each; company B has issued 10 000 000 shares and these are priced at £1.00 each. If you buy £1000 worth of shares in each company your holding in each will be worth the same. You cannot make a decision on which company is best to invest in just by considering that one Share A costs £10 and one Share B costs £1; Share B is not 'cheap' relative to Share A.

The share price only makes sense oin the context of a lot of other information - things like the dividend paid per share, the profit earned by the company per share, the assets held by the company per share, orders received by the company, etc. etc. etc.