Just a little help with shares

deano.uk_3

Hi All,

First i would like to say that i know nothing at all about shares, how they work, and what they meen.

The company im about to start work for has an employee share scheme where i can buy into company shares tax and NI free each month out of my pay.

For each share i buy, the company will give me one (to the value of £50), although to keep the shares i would have to keep them for 12months (which i would intend on doing anyway)
just would like to know do you guys think it is a good offer, the minimum you are able to pay each month is £10, but i would consider £15/20.

oh, and just looking on the yahoo share page and in 52weeks the shares have rose to +22.70%, if that means anything to everyone.

How i see it works, is i buy for one price, and if its worth more in the future, i can sell and get a return... is that basically it?

Aegis

Think of it like this for clarity:

A share save scheme essentially asks you to reinvest some of your pay into the company you work in in exchange for an increase in your pay AT CURRENT RATES. Essentially this means that they're deferring your pay and giving it the possibility of either increasing or decreasing depending on the market.

If you want to do a little investing in your company and understand that there is a possibility of your shares devaluing, then it's almost certainly a good deal.

If you would prefer to have the money you're entitled to as soon as possible, then you would be better off taking the full amount.

masonic

Aegis wrote: »

A share save scheme essentially asks you to reinvest some of your pay into the company you work in in exchange for an increase in your pay AT CURRENT RATES. Essentially this means that they're deferring your pay and giving it the possibility of either increasing or decreasing depending on the market.

Except, surely if the following applies: "For each share i buy, the company will give me one (to the value of £50)", then the shares could almost halve in value without the OP losing out and he could potentially double his money before any rise in the value of the shares is factored in. Or am I missing something?

Aegis

masonic wrote: »

Except, surely if the following applies: "For each share i buy, the company will give me one (to the value of £50)", then the shares could almost halve in value without the OP losing out and he could potentially double his money before any rise in the value of the shares is factored in. Or am I missing something?

That's exactly right as far as I can tell. He would double his money if the shares stayed at the same cost (up to £50 per month) but could potentially lose out if the shares drop significantly and stay down for some reason.