shares in Australian companies



Owning shares results in the following:


receiving dividends, usually twice per year

large established companies generally have dividend yields in the range 2% to 6%.

For example, for each $100 of shares owned, diviends of $4 may be paid per year. this is dependant on economic conditions and the activies of the business.

smaller companies and companies in the first few years of development may not pay dividends




the right to vote at shareholder meetings, usually held once per year. This generally involves only major fundamental issues such as electing directors or winding up the company.


company names must end in:

	Ltd or Limited (public company, usually larger companies listed on the stock exchange. may offer shares to the general public.)

	Pty Ltd (pty company. limited to a maximum of 50 shareholders)


Share prices generally range from $1 to $50 per share.

Shares can be sold through the ASX (Australian Stock Exchange) if the company is a listed company. Prices change each day due to the volume of buying and selling activity, and any news announcements.

Shares in companies that are not listed may be difficult to sell as the shareholder would need to find another party interested in buying them. Companies may offer a 'buy-back' facility to buy back smaller parcels of shares although an estimate of the current value of shares would have to be made.


