Shares - prices & stock markets

FAQs

• What are shares?

  A share represents part-ownership of a company. Sowhen you own shares in a companyyou own a portion of that company.

  As a shareholder you can vote on company matters and get a slice of any profits paid out by the company.

  Discover more with our beginners guide to investing in shares.

• Why do share prices move?

  The price movement of a share is driven by the balance between the number of people wanting to buy or sell at any given time. This is known as supply and demand and linked to investors’ views on the company’s future prospects.

  If the outlook is improvingmore people might want to buy the shares and willing to pay a higher price for those shares. But if a company’s prospects are less rosyfewer people may be willing to buy the shares or more people might look to sell sharescausing the price to fall.

  Discover more with our beginners guide to investing in shares.

• How to buy shares?

  If you’re thinking about buying sharesthe good news is that it’s much easier than you might think. In factyou could do it all online. Here’s how.

  1. Choose an account to hold your shares in. You can buy and hold shares in our Fund and Share AccountHL ISA or Self Invested Personal Pension (SIPP). Find out more and choose an account that's right for you.

  2. Select the share you want to buy and check our charges.

  3. Buying the shares. Once you have an account open with money ready to investyou can buy shares. When trading we’ll show you the live share price. You can then choose to accept the price or not.

  That’s it. Your shares will be held securely in your account. You can see how they’re doing and deal whenever the market is openonline or with the HL app.

• What does it cost to buy and sell UK shares?

  There are three charges to consider before buying UK shares.

  Dealing charge
  Our maximum online dealing fee to buy and sell shares is £6.95 per trade – deal regularly and this could fall to £3.95 per deal. You can also deal over the phone or by post for £29 per trade.

  Annual charge
  The account charge is calculated and billed monthly as a percentage of the value of your investment. In the Fund and Share AccountSIPP and Stocks and Shares ISAthe maximum charge to hold shares is 0.35% per year.

  Stamp duty and PTM levy
  There’s a government stamp duty charge of 0.5% when buying UK listed shares. But you won’t have to pay stamp duty when you sell.

  If you buy or sell over £10,000 worth of sharesthere is a flat fee of £1.50. This is the Panel on Takeovers and Mergers levy.

  View a full list of our charges

• Do I pay stamp duty when I buy shares?

  Yesstamp duty or stamp duty reserve tax (SDRT) is paid on all UK equity purchases at the prevailing rate at the time of dealing.

  When purchasing UK shares which are able to settle through the UK electronic settlement system CRESTyou will pay 0.5% of the value of the trade as Stamp Duty Reserve Tax (“SDRT”). If purchasing “Residual Securities” – those which cannot be settled through the CREST system – you will pay 0.5%rounded up to the nearest multiple of £5on any trades valued at greater than £1000.

  Stamp duty on Irish registered stock is currently charged at 1%.

• When can I buy and sell shares in the UK?

  The UK stock market is open for trading between 8am and 4.30pm on most business days. The only exceptions to this are the last working days before Christmas and the New Yearwhen the stock market closes at 12.30pm.

  Discover more with our beginners guide to investing in shares.