What is a share?
A share is simply part ownership of a business.


Shareholder rights and benefits
• Participatie in annual general meetings
• Receive reports and information
• Dividends and dividend reinvestment plans
• Further issues of shares
• Share buy-backs, and other corporate actions


What is the sharemarket?
A market in which securities are bought and sold; a stock exchange.
The Australian Securities Exchange (ASX) is a licensed market operator. ASX operates Australia's major national sharemarket.

Functions of the sharemarket (stock exchange)
• Operating the primary market (IPO), where companies raise money by issuing shares to investors
• Operating the secondary market, where investors buy and sell those shares at prices determined by market forces.


What is dividend?
A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

What is ex-dividend ?
Ex-dividend is a classification of trading shares when a declared dividend belongs to the seller rather than the buyer
Investors need to buy the dividend-paying stock at least three days before the record date, since trades take three days to settle.

What are franking credits ?
Franking credits are a type of dividend imputation and a way to reduce or eliminate the double taxation of dividends that occurs in many advanced economies

What is dividend imputation?
Dividend imputation is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution.


Where do I start if I want to buy / sell shares in Australia ?
1. Select a stock broker
- Online brokers (Nabtrade / Commsec / e-Trade / etc...)
- Full Service (Investment Fund Companies)

2. Create an account online (for online brokers)
Typical requirements:
- To be 18 years of age or older
- Personal details, date of birth, australian residential and postal address
- Valid email address
- Mobile number
- TFN or exemption code (optional)

To consider:
- Entity (Individual / joint / company)
- Bank account (linked)
- Ways for shares to be held:
All listed companies have a share registry (an external company) that’s in charge of maintaining their shareholders. 


Two ways for shares to be held:
A. CHESS Sponsored Shares - Shares that are registered with a stock broker (CommSec, NabTrade or another broker). CHESS Sponsored Shares are allocated a Holder Identification Number (HIN) by the broker.

Holder Identification Number (HIN)
A HIN is a unique number that is issued to you by ASX when you become a client of a broker. A HIN starts with the letter X and followed by ten numbers, e.g. X0001234567

If you use multiple stockbrokers you will receive a different HIN from each stockbroker. You maintain 100% ownership of the shares and they are protected in the event your stockbroker goes bankrupt. Shares can be sold instantly because your stockbroker can confirm your exact holdings.


B. Issuer Sponsored Shares - Shares that are managed by the issuer of those shares via the issuer's Share Registry. Issuer Sponsored Shares can be traded through any broker, providing conditions set out by that broker are met. Issuer Sponsored Shares are allocated a Security Reference Number (SRN).

If you own shares in multiple listed companies, each share holding will be represented by a different SRN.
To confirm your share holdings you must log into the applicable share registries website (e.g. Computershare, Link Market Services, etc.)


* Recommendation: (CHESS Sponsored Shares) which holds your shares on a HIN


3. How to select what share to buy ?
A. Fundamental analysis
- Analyze financial statements to determine the fair value
 
B. Technical analysis
- Study of history of market data to predict future price movement

How do I select what share to buy if I am not yet familiar with technical and fundamental analysis ?
* Seek professional services
* Invest on stocks that are diversified like: Index fund or LIC or ETF
* Stock broker research and recommendation
* Own observation and research (online / newspaper / magazines)


4. How to buy / sell shares (Depends on your online broker)

General process: (refer to your online brokers guide)
- Login to your online broker account
- Transfer funds from your link account to your brokerage account
- Minimum share purchase is $500
- Input the stock code / number of shares / buy price
- Once transaction is complete, confirmation of transaction / contract is sent via email
- You will received a documentation of confirmation on your share holdings from CHESS or from Issuer statements
It has instruction to update your details such as bank account / email / TFN and if you want to set DRP.



Monitoring your portfolio
Download apps on your mobile phone
Login to your online broker account weekly / monthly


Record Keeping
• Records relating to income for income tax purposes, including dividend, dividend reinvestment or interest payment advice slips all of which generally are issued by company share registries to the holder's registered address; and
• Records relating to purchase and sale prices for capital gains tax purposes, including contract notes, copies of applications made for initial public offerings, dividend reinvestment and bonus share plan advice slips.



Taxation
- Keeping all records saves a lot of time during tax filling
- Total all your profits and losses.
- Review your dividends and transaction fees.
- As an individual, if you hold a share for more than a year, you only pay Capital Gains Tax (CGT) on 50% of your profit.
- You can declare looses during tax filling and it will be deducted from your future gains


How to prepare documents for tax filling:
1. Some broker provides free report of your trades and some charge for a premium.
2. DIY - record all your trades manually / use Excel spreadsheet
3. Use external software to track your trades











* Materials comes from various sources

1. Orocobre Limited (ASX: ORE) - 20.23% of its shares held short
2. Syrah Resources Ltd (ASX: SYR) - 18.78% of its shares held short
3. Western Areas Ltd (ASX: WSA) - 16.27% of its shares held short
4. Myer Holdings Ltd (ASX: MYR) - 15.46% of its shares held short
5. Independence Group NL (ASX: IGO) - 14.54% of its shares held short
6. Mayne Pharma Group Ltd (ASX: MYX) - 13.25% of its shares held short
7. Aconex Ltd (ASX: ACX) - 12.57% of its shares held short
8. Metcash Limited (ASX: MTS) - 12.50% of its shares held short
9. Domino’s Pizza Enterprises Ltd. (ASX: DMP)- 12.25% of its shares held short
10. Flight Centre Travel Group Ltd (ASX: FLT) - 11.54% of its shares held short


* Info from ASX website

May 2017
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*CCL:ASX*
Credit Suisse - BUY / Target Price $10.30
Morgan Stanley - HOLD / Target price $10.00
Deutsche - HOLD / Target Price $9.50

*BTT:ASX*
Credit Suisse - HOLD


*AMP:ASX*
Citi - HOLD


*CWN:ASX*
Citi - Buy




April 2017
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*COH:ASX* / CP 139
Credit Suisse - SELL / Target Price $121
Morgan Stanley - HOLD / Target price $138
UBS - SELL / Target Price $122




* The information provided may not be the exact data when the broker release their reports.
* The reason for posting the above information is to serve as a guide and to know the sentiments of the broker.
* Brokers sentiment may changed at anytime.

Note: This review may be outdated and from my personal view.


*CBA CommSec
- I had a savings/transaction  account with CBA and thinking that it would be seamless/faster to move funds from my savings account to the brokerage account  (I was wrong at that time as CBA was a separate entity to CommSec so it will take 1-2 days to move the funds). Now, I think they integrate the savings to online broker account and other investment portfolio with CBA MyWealth (I am not sure what are the changes since I have not used them for some time now).
- I find their user interface better.
- At the time I open an account with them, they charge additional access to stock recommendation and analysis. Now, I think they also probide basic recommendation and analysis for FREE. Higher access / services still need to pay extra (almost all online broker does the same thing).
- I also notice their transaction fee is a bit higher compare to others.
- I'm a small time stock investor/trader so basic transaction fee will go a long way.
- They charge extra fees to access stock recommendations and analysis  (I think they now give out free/limited/basic stock recommendation and analysis)

* Most online broker charge fixed transaction fee if your trade is below 10k AUD. Above 10k transaction fee depends on percentage.


I was looking for better transaction fee and I came across with NABTrade which new in the market offering FROM $14.95 per transaction.

I think this is the CHEAPEST you could find. If you find cheaper than this - let me know.
They also provide the highest interest rate for a trading account.



* NABTrade
- lower transaction fee than CBA if I trade below 10k AUD
- They offer a $200 or $300 transaction fee to use with in a month (This may not be accurate - I could not remember the details)
- they had an online broker account that earn interest. Your fund still earns interest even if you park your cash that you want to use for investing/trading.  Interest is below 1% but you don't get this feature from other online broker account.
- Also has good graphical interface as CBA. Graphical user interface helps in navigation specially if you are new to stock market investing/trading.
- I also have NAB savings/transaction account, thinking it will be easier to move the funds quicker between "high" online savings account which earns higher interest rate.
- I was disappointed when I try to withdraw some money online as they said they have a maximum limit if you do it online. I have to call them up if I want to take out money from the brokerage account. 
_ I find their platform  a bit slow at times and having some random issues accessing their website.
- I guess since it is a newly offered platform that they need to restrict some access and  tweaking and adjustments.

NABTrade could have matured and improve now compare to when they first started offering their online trading platform.


I came across with BellDirect when NRMA members are entitled for $100 cash back when opening an account with BellDirect.
Gain of $100 just be opening a trading account.
Compare to Commsec and NABTrade that offer $200-$300 worth of transaction fee to be used within a certain period.



* BellDirect
- lower transaction fee than CBA/almost similar to NABTrade if I trade below 10k AUD
- User interface is not as pretty as NABTrade and CommSec. I feel like their platform is more like for advance/expert investors/traders.
- They provide FREE basic stock recommendation/analysis. Now, I think NABTrade and CommSec also provides FREE basic stock recommendation and analysis.
- Trading account also provide interest. If you park your funds and has not bought any stocks, it still earn interest and deposit to your account on a monthly basis (same with CommSec and NABTrade).
- Deposit and withdrawals can be done online and takes 1-2 days
- Provides higher access to their trading platform and discount to trading fees if you trade more often.


Deciding on which online broker to use depends on your needs and which fits your trading style and and requirements.


Note:
- This review may be outdated and from my personal view.
- Check NABTrade / Commsec / Belldirect websites for their current offerings
- I have not used some of the broker account for a long time 

Learn about stock market and how to earn from it.

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Philippines:
- broker fee and tax is already calculated or deducted every time you buy and sell shares

Australia:
- tax is not yet deducted when you buy and sell shares
- only brokers fee is deducted for every transaction (buy/sell)
- Since tax was not deducted, you need to file what ever gain or loss during tax filing
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Summary of links within this blog related to stocks/share.
- Information on the links  maybe outdated as it maybe posted on a later date.


Current post:
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Stocks: List of brokers in Philippines / Australia
Stocks: TAX in the Philippines and in Australia



Related post:
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Philippines
http://www.pse.com.ph/stockMarket/tradingParticipants.html?tab=2

Australia
http://www.infochoice.com.au/investment/investment-broker/online-brokers.aspx
http://www.asx.com.au/prices/find-broker.htm
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