Finans

How to invest in a company

With savings rates still proving to be low, a large number of people are turning to investments in companies to get their savings to work harder for them. Many investors will tell you that investing in a company, through shares is not a short term money maker, however, when you compare it to a savings account the benefits and profit come into their own. Whether you have £10 or £10,000, there are a number of different ways you can invest.

Peer investment

There are a number of online peer investment opportunities; opening up the market to both people needing support for their businesses and projects, through to potential investors.

Some of the more noteable and well known peer investment sources are Crowd Cube and Kickstarter. Both of these websites, allowing the public to invest in a different number and variety of pitches. Most of these are start ups or newly established businesses. This does not come without its own inherent risks; there is a possibility you can have no payout on your investment, or lose it entirely. However, there are a number of success stories and well known companies within some portfolios.

Traditional Stockbrokers

If you want to go down the traditional route of buying and selling stocks, then you will need to find a reputable stockbroker. A traditional stockbroker offers three options: execution only services, discretionary services and advisory services.

Execution only consists of making trades of stocks on your behalf, without providing any advice on the subject. A discretionary service requires you to have at least £100,000 and the stockbroker will buy and sell on your behalf, often without the requirement to consult you. An advisory service is best for those who are new to company investment; the stockbroker will look through your requirements and needs, advising the best options they feel will give you the return on your investment.