Shares - prices & stock markets

FAQs

• What are shares?

  A share represents part-ownership of a company. So, when you own shares in a company, you 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 improving, more 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 rosy, fewer people may be willing to buy the shares or more people might look to sell shares, causing the price to fall.

  Discover more with our beginners guide to investing in shares.

• How to buy shares?

  If you’re thinking about buying shares, the good news is that it’s much easier than you might think. In fact, you 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 Account, HL 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 invest, you 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 open, online 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 £11.95 per trade – deal regularly and this could fall to £5.95 per deal. You can also deal over the phone or by post from £20 - £50 per deal.

  Annual charge
  There’s no annual charge to hold shares in the Fund and Share Account. It costs up to 0.45% per year to hold shares in an HL ISA or SIPP (capped at £45 in the ISA and £200 in the SIPP).

  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.

  And there’s also a flat £1.50 fee for those that buy or sell over £10,000 worth of shares. 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?

  Yes, stamp 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 CREST, you 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 £5, on 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 Year, when the stock market closes at 12.30pm.

  Discover more with our beginners guide to investing in shares.