If you\u2019re fairly new to investing, or have invested in funds and bonds but are considering expanding into stocks and shares, the UK stock market is a logical place to start. Read on to find out the key things you need to know about investing in UK stocks.<\/p>
The main exchange for trading stocks in UK is the London Stock Exchange (LSE). It comprises two key markets: the \u201cMain Market\u201d and AIM.<\/p>
LSE\u2019s Main Market lists more than 1,000 stocks from the UK and around 100 other countries worldwide, including (according to its website) \u201cmany of the world\u2019s largest, most successful and dynamic companies.\u201d As well as stocks in individual companies, the Main Market includes a range of Exchange Traded Funds<\/a> (ETFs).<\/p> AIM<\/a> is the London Stock Exchange\u2019s home for small and medium-sized growth companies. AIM stands for alternative investment market, and is designed (typically) for business that wanted to raise capital but either couldn\u2019t afford the costs required or didn\u2019t meet the requirements necessary to list on the London Stock Exchange\u2019s Main Market. Investing in AIM companies usually means investing in early-stage companies with a higher risk of failing. But with this increased risk may also come a chance of higher reward if the companies take off, which some regard as a trade-off worth making.<\/p> A stock market index is a virtual portfolio of assets that measures and tracks the performance of the included assets as a whole. It gives a good indication of how a stock market, or sub-sections of the stock market, are doing. You can replicate an index either by buying shares in each individual company contained in the index, or by buying a fund that includes all of the assets in the index.<\/p> There are around 20 different indices. Some of the key ones you may encounter include:<\/p> There are also indices that represent the AIM stock exchange, or sub-sections of it.<\/p>LSE AIM market<\/h4>
What are the main stock indices that are listed in the UK?<\/h3>
How to invest in the UK stock market<\/h3>