Buying Shares in a company

Chrisduder

Hi All,
This is a very simple question. I am TOTALLY new to buying stocks and shares. The company I work for I trust and am so lucky. So I wish to invest 1k in them. I know, in this world thats really a pittance. But I really have no idea how to go about this. Can my bank do it? Do I go to someone like Hargreaves Lansdown? I am not interested in becoming a trader, I just wish to invest as a one off.
Can anyone please advise me?

csgohan4

putting money to an individual company can be risky. I assume you have researched the company in detail, as working for a company and how their doing in the stock market are totally different. 

What is the plan for the 1k ? do you have an estimate of how it will go up by?

would it beat the current 1.16% by NS&I?

Why this particular company and not Tesla/Amazon for example?

Are you being scammed into investing into the company for the promise of unrealistic returns?

I see you were in an IVA, would the 1K be better served in an emergency fund instead?

Albermarle

Do I go to someone like Hargreaves Lansdown?

Yes, they are not the cheapest but for £1K it is not going to make much difference. Best to do it via a stocks and shares ISA as it keeps it tidier. 

Whether it is a good idea or not is another matter as per the comments above. 

msallen

First things first. Does the company have publicly tradeable shares? What stock exchange are they listed on?

redpete

Your salary and pension (albeit that is protected) are dependent on your company staying healthy.  Are you happy for a proportion of your savings / investments to also be dependent on them?

Grumpy_chap

Is the OP's pension DB or DC?  If DC, the outcome is not that closely tied to the company so long as contributions are maintained each month.

tacpot12

It is a good point that Grumpy_chap makes. If your pension is a Final/Average Salary (aka DB) pension, then you are already heavily dependent on the company surviving and thriving. You are not an investor, but £1000 isn't going to make any different to the company. It would be better invested in a fund that invests in lots of different shares.  If your pension is a DC pension, then it is immune to the performance of the company, and hence investing directly in the company, if you think it has good prospects, is a safer bet for you. 

redpete

Grumpy_chap said:

Is the OP's pension DB or DC?  If DC, the outcome is not that closely tied to the company so long as contributions are maintained each month.

True for what is already invested. One thing to take into account tis that if you no longer have your job you will lose the opportunity for tax-efficient investment into a pension - although that is scratching around a bit to justify my comment about relying on the company for a pension.
My lesson was learnt from working for Marconi when that bubble burst.  Although I had sold a number of shares at a good profit those remaining became practically worthless by the time I left.  I now sell tranches of the shares I get through a SIP each time the value exceeds £1000.

Lungboy

Does your company offer a share save scheme? That might work out better.