"In this business, by the time you realize you're in trouble, it's too late to save yourself. Unless you're running scared all the time, you're gone." Bill Gates

Stockmarket News Updates

Sign up for our FREE Stockmarket News email service.

Click here

TAX IMPLICATIONS OF SHARES

Too many investors make investment decisions based on minimising tax. You should base investment decisions primarily on investment merit. Tax should be a secondary consideration, not the primary one.

When you buy and sell shares for a profit, you realise a capital gain. Generally, tax must be paid on this. Tax on dividends must also be paid, but it all depends on how much (if any) tax the company has paid (fully franked or partially franked dividends, as discussed previously) and whether there are imputation credits and so on.

For further details, please contact an accountant or the Australian Tax Office.

Profile: Warren Buffett

Far and away the most famous and successful stock market investor of all time.

more

Why Invest in Shares?

Beyond shares being the best long-term investment and having tax benefits, they also offer other advantages, including flexibility and liquidity.

more

Patience in InvestingCharacteristics of an Attractive InvestmentGarbage Collection or Investing?Goals
How Does the Stock Market Work?Why Invest in Shares?Choosing a StockbrokerOpening a Broking AccountBroker's CostsHow Much Do I Need to Start Investing?
Buying SharesDividendsBuying for DividendsTax Implications of Shares
Developing an Investment StrategyTakeoversTakeover StrategiesTakeover Q&A
Basic Options TerminologyContracts for Difference (CFDs)Option UsesOptions
Benefits of DIY SuperannuationWho Can Participate in DIY Superannuation?Investment Requirements
FramingLoss AversionAnchoringHindsight BiasConfirmation BiasCognitive DissonanceRepresentativenessAvailability BiasHerdingSelf Attribution Bias
Benjamin GrahamGeorge SorosWarren Buffett