UK shareholders are sticking their shares under the mattress rather than actively trading them on the stock market, according to research by online personal finance service norwichunion.com.
UK shareholders are sticking their shares under the mattress rather than actively trading them on the stock market, according to research by online personal finance service norwichunion.com.
Four out of five shareholders questioned said they had not bought or sold shares in the past 12 months, the most common excuse being that they were waiting for the markets to pick up (26 per cent).
Others quoted apathy, the perceived costs and the uncertainty of how to go about buying or selling shares being among the reasons for sitting on their portfolio and doing nothing.
There’s a lot of money involved, with around half of those shareholders interviewed holding shares worth Ł5,000 or more.
And six per cent didn't actually know whether they owned any shares or not.
Of those questioned, 16% said they were keeping their shares for a rainy day - this at a time when a growing number of commentators are saying that now is a good time to invest for medium or long-term gains.
Twice as many of those shareholders who had traded in the past year are hooked up to the web as those who left their shares where they were, suggesting that people who regularly use the internet are more switched on to share trading.
Commenting on the research, Rob Davies, brand manager, norwichunion.com, said: "Our research shows that whilst a quarter of the population own shares, very few have actually traded – some, undoubtedly put off by the perceived complexity and expense of some share-dealing services.
"Our service appeals to all share investors – the less experienced and the day traders – because it is a straightforward, low cost and, being online, convenient way to buy and sell shares.
“With a trade costing as little as Ł5* and helpful and jargon- free tools to guide you through - including a virtual portfolio that allows you to track investments without committing your money - the service aims to encourage people who haven’t traded for some time to re-enter the market.
“And the stock market is currently offering an extended January sale, so there are plenty of potential bargains to be had by online Britons. We are already seeing dealing activity picking up among our customers.”
norwichunion.com's online share dealing service can only be found at www.norwichunion.com.
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Press contact:
Louise Zucchi at Norwich Union on 08703 66 68 60
Notes to editors
- This survey was carried out by Taylor Nelson Sofres between 18-20 January 2002. 1,003 people, aged 16+, were interviewed on the telephone across the UK.
- norwichunion.com was launched in May 2001 and provides a comprehensive range of free, interactive financial planning tools and impartial money guides, designed to help people make better financial decisions by making complex money matters simple.
- A fund supermarket ISA, offered by NUSOF.com Limited, and share dealing service are the first in a range of products that will subsequently include a number of banking products.
- Norwich Union is the UK’s largest insurer offering a comprehensive range of long-term savings and general insurance products.
- Norwich Union’s news releases are available on this internet site
- A selection of images are available from the Norwich Union Newscast site at www.newscast.co.uk
- An ISDN facility is available for studio quality interviews. Call the press office on 08703 66 68 68
For life and pension media enquiries 08703 66 68 73 For all other media enquiries 08703 66 68 68
*The Ł5 per deal plus stamp duty and PTM levy, if applicable, is a special offer which commenced on 7 January 2002 and will finish on 31 March 2002. The operation of this special offer is entirely within our discretion, further we reserve the right to withdraw the special offer at anytime. An additional Ł5 will be charged for trading over the phone and from 1 April 2002 our standard pricing for share dealing will apply. Please note that there are additional quarterly management charges of Ł9.95 once you have set up your account online. Please read the full terms and conditions on the norwichunion.com web site for important details.
Please remember that past performance is no guide to future performance. These are risk investments and their value, and any income from them can go down as well as up.
The norwichunion.com online share dealing service is provided by Pershing Securities Limited (Pershing) who are regulated by the Financial Services Authority and are members of the London Stock Exchange and LIFFE. By using the service, customers will form a contract with Pershing and all share trades effected by customers will be with Pershing. To market the service, Norwich Union Wealth Management Limited is regulated by the Financial Services Authority for investment business.