An Overview of BHP Shares

What is BHP Billiton?past, present and future prospects) before dealing in
BHP Billiton is the world's biggest mining company.its shares.
Besides this, it is also the largest Australian companyIt is better to invest for the long- term
in terms of market capitalisation. The company wasOne of the best ways to make money is through
created in the year 2001 by Australia's Broken Hillthe 'Buy low and Sell high' strategy. Therefore, you
Proprietary Company (BHP) along with the UK's Biltonshould buy the BHP share when the price is low and
that has a South African and Dutch background.always sell it when it is high. This is the reason you
Reasons behind the Growth in BHP sharesare always advised to buy in a 'bear' market. This
The company is the majority partner in the dual-listedterm is used to depict the sentiment of the market
structure and is listed on the Australian Securitiesif it is low and its share prices have fallen generally.
Exchange. Apart from this, BHP is also listed on theSo when should you sell your BHP shares? The best
London Stock Exchange and is a constituent of thetime to sell your BHP shares is in a 'bull' market. This
FTSE 100 index. The markets are acting oddly rightis the time when the sentiment is high and the prices
now, but if a private investor is allowed to take aof the shares are on a rise. But it is almost impossible
few calculated risks, trusting BHP is not that badfor anyone and everyone to time the market. This is
option. So, what are a few things that one needs towhy it is advised to invest in BHP for long term
consider before buying shares from the market?purposes and hold it for few years before you sell
Remember that you own a part of the businessthem.
When you are investing in stocks, you are notThe price of your share can fluctuate in the short-
investing in the market, but you are also investing inrun
the equity shares of a company. It makes you aAssume that a BHP share is priced at $ 10 each,
shareholder and now you own a small part of thatknown as the fixed value of a stock. So, whenever
particular business without going to work there. So,the share is traded in the market, its value will either
what's so good about it? Since you own a part ofrise up or go down depending upon 'supply' and
the company, you automatically are entitled to a'demand' for the stock. Isn't it?
share in the profits of BHP. Similarly, you also have toIn short, prices can get influenced by the market
bear the losses of BHP, if any. That is why it issentiment and general direction of the market. As a
advised to properly research about the company (itsresult, you may witness short-term slumps.