| Any shares you hold in your employing company, | | | | start one. |
| whether through share option schemes or direct, are | | | | Getting shareholders' perks |
| treated as business assets for the purpose of CW | | | | Some companies offer perks to shareholders, usually |
| taper relief and are therefore more tax efficient than | | | | in the form of a discount on goods or services they |
| other equity investments. | | | | supply. There is usually a minimum shareholding to |
| The only thing to watch is the risk of having too | | | | qualify. |
| many of your investments tied up in the company | | | | Experts warn not to invest in a company merely to |
| which employs you. | | | | get the perk; the share should be worth buying for |
| Investing through an investing club | | | | its intrinsic value. |
| Investment clubs are organisations which arrange | | | | Points to consider further |
| cooperative investing. Funds are built up by | | | | |
| contributions from individual club members, who meet | | | | 1. You have decided to start investing in equities. |
| regularly to review their existing portfolio and select | | | | How do you decide which shares to buy? |
| further investments, which are made by the club on | | | | 2. How do you feel about investing in your employing |
| behalf of the members. | | | | company? Do you think it is too risky, because you |
| The advantage is the saving in cost from bulk buying | | | | might lose your job as well as your savings? What is |
| and the spreading of risk over more individual shares | | | | the advantage over other shares? |
| than you could buy on your own with the same | | | | 3. If you have bought a share but thd~ price has |
| amount you put in. The disadvantage is that you | | | | since fallen, should you cut your losses? Does it make |
| have to go along with the majority decision, whether | | | | any difference if the whole market has suffered a |
| you like it or not. | | | | set back? What is the most important factor in |
| The Association of Investment Clubs will provide | | | | making your decision? |
| details of any club in your area and tell you how to | | | | |