Intro

This lesson looks at what you need to do to buy and sell shares or fund units, and covers the topics:
- how to place orders
- where to place ordersIt takes about 10 minutes to complete.

The legal bit

The information on this website is a starting point - we've linked to more information (and how to contact professional advisors) throughout the lessons if you need to know more.This is not investment, financial or tax advice.We try to make sure that information on the website is accurate and free from errors. However, to the maximum extent provided by law (but subject to your rights under the Consumer Guarantees Act), Aptitude and its personnel:
- Do not make any representations, or give any warranties, that the information is accurate, free from errors or is suitable for you.
- Do not accept any liability to you whatsoever (and however arising) for any loss or damage you incur in connection with the contents of, or your use of any of information contained in, the website.Aptitude is the trading name of Ninja Orange Ltd in relation to these lessons.

• Start

How to buy and sell listed shares and funds

First you need to make an order. An order is a formal request to trade shares (or units in a fund) that is submitted to the market.To submit an order, you need to say:
- if you are buying or selling
- the number of shares or units you want to buy (or the amount of money you are willing to invest in this order)
- the company or fund you want to invest in
- the price per share or units you are willing to pay.Once your order is on the market, it will be matched with other orders. When there is a complementary order which matches yours, the trade is booked and both orders are removed from the market.Once this happens, you are legally required to complete your trade, and pay the total amount of the trade (including any broker fees). Most services won't let you place an order unless you have enough money to cover it in your account.

• Next

Placing orders

There are three ways you can place orders on the market.

1. Through a professional advisor or brokerage firmFinancial advisors and broking firms trade shares and units on your behalf. Some provide a full, personalised service where they help you pick the shares or units that are best for you. Others provide generic recommendations so you can make your own decisions.A broker may be helpful if you have a larger sum to invest, you’re new to share investing or you won’t have time to do your own research.The FMA provides great information on choosing and working with an advisor.

2. Through an online serviceThere are several online services that operate in New Zealand which allow you to invest in funds, NZX (New Zealand eXchange - NZ's share market) listed companies, and overseas companies. Make sure you understand how the service works before you invest, for example -- what the fees are on buying and selling
- do you own the shares or units directly, or are they owned by the service on your behalf
- how do you sell your investment when you're ready
- interest.co.nz has a good article comparing new easy-to-use platforms that have arrived on the market in the last few years.Online ordering platforms include:- ASB Securities - NZX and ASX share trading (NZ share market and Australian share market, including exchange traded funds)
- Direct Broking - NZX and ASX share trading, service is owned and operated by Jarden Securities
- Sharesies - NZX share trading, and some international funds
- Hatch - United States markets share trading, and some international funds
- InvestNow - New Zealand funds and some international funds

3. Directly from the companies or fund managersInvestment companies who manage Exchange Traded Funds often allow you to invest directly with them, rather than buying units on the open market. Buying this way can have lower fees compared with buying from an existing unit holder.You can sell the units through any share broker when you choose to sell them - giving you access to a greater pool of buyers.In some cases, you can also get shares from the company itself. A common example is when your work for them and shares are included in your salary package.

• Next

Where to find out more

Financial Markets Authority - advice on using financial advisorsInterest.co.nz - article on easy-to-use investing platformsNZX market participants - a list of services you can use to trade on the NZX. This can't be viewed on smartphones.Sharesies - sign up with our referral link to help support these courses!

• Next

1. Where can you buy shares?

• An NZX market participant
• Bob from the internet
• Through a financial advisor

2. Where can I get advice on which shares and investments to choose?

• From a financial advisor
• Bob from the internet
• The dark web

Completed!

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Thanks!

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