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I’ve always wanted to “dabble” in the world of shares but have never known where to start! Where do I go? Is there a dummies guide to shares somewhere?

Ajay.

Without wishing to endorse any particular guide, there are a number of online resources for this sort of thing, examples of which can be found at:

Stock markets are, by their very nature, in a constant state of flux, so it is impossible to state when is ‘the right time’ to begin dabbling - it will depend on market fluctuations and economic conditions at the time. Most experts will agree that “time in the market” is more important than trying to time the market.

As a general rule, due to the relatively high-risk / high-volatility nature of directly traded shares, they should be treated as medium to long-term investments (a minimum of five years), and should only really make up the proportion of an individual’s portfolio that they can afford to lose.

I have found the best way to learn is with an investment club. These allow you to learn about shares and share trading but without losing your shirt!

Contact Proshare Clubs to find out more and it can be a great way of learning with friends from as little as say 25 per month - well they start off as friends anyway. I belong to one as well.

How do I learn about shares, with a view to investing and hopefully trying to make some money, I don’t have much to invest to start with, say between 2,000 to 5,000.

Simon Cobrettie.

The stock market, and ways to make money investing, is a vast topic to cover and as such I can recommend the following websites. These should provide good overviews of the markets, how they work and advice for novice investors.

In light of the money you have to invest, you may want to avoid investing in listed companies directly as this could be a very risky and volatile strategy.

Instead I would advocate a much lower risk approach and recommend you invest through instruments that track markets as a whole i.e. the FTSE 100, S&P 500 etc. The cheapest way to access to these tracking instruments is through Exchange Traded Funds (ETF). These trade like ordinary shares but track specific indices and for more information I recommend you take a look at the ishares website.

Pooled investments such Unit Trust and OEIC funds are a way of gaining exposure to stock markets with the advantage of lower levels of risk via diversification, with actively-managed funds benefiting further from the continued expertise and monitoring of experienced investment managers. But watch out for the charges (and their deductions).

Eurotunnel has been through a long period of restructuring and we’ve heard from two of their shareholders. I own some Eurotunnel shares and I’ve recently received something in the post about a share swap scheme, unfortunately the accompanying information is extremely difficult to understand and I wanted to know whether it would be better for me to participate in the share swap or keep what I have? I don’t even know what the purpose of the share swap scheme is so it’s hard to make a decision either way.

Julian Fisher.

Groupe Eurotunnel SA is in the process of absorbing Eurotunnel Plc and Eurotunnel SA in a bid to restructure the company’s 6.2bn debt. You are being offered shares/bonds in the new company Groupe Eurotunnel SA and the options available to you are to exchange each unit of Eurotunnel Plc for 1 ordinary Groupe Eurotunnel SA and 1 ordinary equity warrant.

Should you wish to take up this offer you will have the added option of subscribing to a basket of bonds, further details of which should be provided by Eurotunnel Plc shortly. , you may wish to take no action at all. However, you should be aware that the cut off date for responses is 10 May 2007.

Lastly, it is my understanding that under the new agreement shareholders will be eligible for six single journeys a year at a discount of 30% until 2010. After this date all shareholder perks will be at the discretion of the management, full details of which can be found in your pack.

By chance I received an offer from Hargreaves Lansdown this morning to buy shares in their company which is floating in a few months. My question is how do you analyse the market potential of a financial institution, especially one that is essentially an intermediary?

Nick.

Good question - I will be looking at the proportion of recurring income from fees as opposed to sales. The value being that the fees are likely to increase the longer term value of the business.

Hargreaves Lansdown have grown their business very well but I would be tempted to wait until after the flotation to see if the valuation comes back a bit.

However, I suspect with that client base they may become a takeover target for firms wishing to enter the UK market in scale.

Please could you explain, what is meant by “share buy back” when a company announces this, is it a benefit to shareholders?

Bob Hunt.

‘Share Buyback’ is the buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake in that company.

A buyback is a method for a company to invest in itself since they can’t own themselves. Thus, buybacks reduce the number of shares outstanding on the market which increases the proportion of shares the company owns. Buybacks can be carried out in two ways:

1. Shareholders may be presented with a tender offer whereby they have the option to submit (or tender) a portion or all of their shares within a certain time frame and at a premium to the current market price. This premium compensates investors for tendering their shares rather than holding on to them.

2. Companies buy back shares on the open market over an extended period of time.

I have been trying for a year to transfer my shares in an American oil company to my son. However I have so far been unable to do this because it requires Medallion Guarantee Signature. Can you tell me how someone in my position living in Scotland can possibly gain the Medallion Guarantee Signature?

GS Bennett.

The Medallion Guarantee Scheme is a method of trying to provide assurance to a transfer of US stock. It is a bit like and indemnity that would be signed if you lost a share certificate.

A good stockbroker who handles US stocks should be able to help. My old firm of Barclays Stockbrokers in Glasgow should be able to help. There will be a charge but this will vary from firm to firm.

I bought just over 4000 shares in British Airways via the ’staff incentive scheme’ over several years, all at different price levels. The last acquisition of the shares was in 1999.

John Cunningham.

John, without knowing the amounts and purchase dates of your British Airways shares I am unable to comment on your capital gains tax liability. What I can tell you is that any gain over 9,200 is subject to Capital Gains Tax for the 07/08 tax year.

To find out what level of tax you would need to pay, if any at all, I recommend you look at the Inland Revenue’s website:

If you are still unsure about your tax liability I suggest you seek advice from a qualified accountant.

In answer to your second question there are a number of online share dealing firms that offer varying commission rates. I have provided internet addresses for a number of these and I’ll let you make your own comparison.

Alternatively, if you hold the shares in certificated form, the easiest way to sell them would be directly through the registrar - Computershare Investor Services 0870 702 0002.

I am being approached by ‘phone by a company in the name of “Regency” whom I understand are in Bahrain. They are offering me shares in a company which apparantely is due to float into the stock market arround September/October 2007. The company’s name is US Petroleum Holdings.

Manuela Vazquez .

The internet is a good way to find basic details of a company. If the company is UK based you can check its validity with Companies House. Their website is:

You should always seek professional guidance from an adviser or stockbroker as not all companies advertised are as honest as they appear. They will be able to reassure you of the validity of the company and whether they are about to float.

You should beware of ‘Boiler rooms’, who are high pressure sales firms, often based overseas, who target investors - often sophisticated investors - to illegally offer them non-tradeable, overpriced or even non-existent shares. They acquire shareholder lists legitimately using data supplied under the Companies Act or from other sources.

The best advise I can give is that if you are unsure always check with a trusted professional advisor.

I understand that brokers have their private clients, and the clients pay for a service, which includes advice on shares.

Dave Lawton .

An Analyst within a stock broking firm will produce research notes and initially present them to existing clients. Thereafter, the stock broking firm may chose to release these notes to the media with the intention that if a particular recommendation does well, it may raise the profile of the firm.

However beware as often research can be produced by brokers who represent the company and therefore have a certain bias. Also beware it’s age as they go out of date very quickly and also if it is for the retail market or for the market (if you have a spare 500,000 around!)

In basic terms, the role of the stockbroker is to act on behalf of investors in the purchasing and selling of securities. To do so, they approach “Market Makers” who make markets by quoting both the buy and sell price of individual stocks and shares.

Alliance Boots has just been taken over by a private equity group. Many of our viewers are shareholders in the company - what happens to them?

The shareholders are going to be offered 11.39 per share and that includes the last dividend.
Not all the details have been finalised yet, so you have to wait for Alliance Boots to write to you.

The opinions expressed are Justin’s, not the programme’s. The answers are not intended to be definitive and should be used for guidance only. Always seek professional advice for your own particular situation.

When somebody dies, inheritance tax is calculated by reference to the value of the estate on death - essentially open market value of the estate. From this, it is possible to deduct a limited range of liabilities such as:

Doctors said Carl and Clarence Aguirre, from the Philippines, were “strong and stable”.

The marathon operation took place at Children’s Hospital at Montefiore Medical Center, New York, on Wednesday.

It was the latest in a series of procedures carried out on the boys over the last 10 months.

Normally, doctors attempt to separate conjoined twins during one long procedure.

The US team chose to carry out several shorter procedures instead in an attempt to shorten the time the twins spent under anaesthetic, reducing the risk of bleeding and injury to the brain.

In previous operations, the boys’ skull was opened, their
separate-but-touching brains carefully pushed apart and
most of their shared blood vessels cut and divided.

Between surgery, the boys were given time to heal and to adapt to their rerouted circulation systems.

, veins near Clarence’s brain were doing much of the circulation work for both twins but scans showed dormant veins on Carl’s side had “plumped up” and begun working in response to the surgery.

Reconstruction

During this latest operation, doctors completed an incision around their shared skull before teasing apart abutting portions of the boys’ brains

You’re now the mother of two boys Words of surgeon Dr David to the twins’ mother after the operation

The twins’ head-to-head operating tables were then slightly pulled apart so that the remaining tissue could be separated.

Doctors had to cut and divide the major vein the boys still shared, and separate the remaining area - about an
inch and a half across - where the brains were touching -

The twins also shared a dura mater, the membrane that covers the brain, so doctors had to reconstruct membranes for both boys.

The boys skulls will be reconstructed in another operation at a later date.

A hospital explained how Dr David Staffenberg, the boys’ plastic surgeon, who led the surgery, broke the news to the twins’ mother, Arlene Aguirre, after the operation.

She said: “He got on his knees, took Aguirre’s hands and said ‘You’re now the mother of two boys’.”

Mrs Aguirre then burst into tears, she said.