Stocks & Shares

• Stocks or shares are a partial ownership of a publicly traded company.  Stocks can have a combination of capital growth and dividend payments.

• Not all stocks pay dividends, particularly growth stocks.

• There is no guarantee of capital and are subject to market risks.

• Depending on the industry, there could be specific risks.

• Stock in a different currency will encounter risk due to currency rate fluctuations.

• Stocks typically keep up with the rate of inflation.  This provides protection from deposits or savings that are not keeping up with inflation.

• Access to funds is quite easy, as stocks do not have a term.  There are commissions paid on purchase and sale of stocks.

• Stocks are subject to capital gains tax, if any gains and dividend withholding tax if dividends are paid.  There is an annual capital gain tax relief of €1,270.  Capital losses brought forward can offset capital gains tax.
• • Stocks kept in a portfolio help reduce risks from low interest rate investments.   They are suitable for investors who want capital growth and can accept a higher level of risk.