If you’ve acquired a set of shares from a beloved aunt or grandparent who’s recently passed away, or perhaps you’ve earned them in an Initial Public Offering, you may be wondering if it’s worth holding onto them or selling them outright in a one-off share trade.
If you’re new to the world of trading, you might be worrying that this sounds complicated and you’re unsure of what the benefits would be. Rather than leaving you to worry, we’ve made a list of a few pros and cons to help you make your decision of whether to sell your shares or not.
Pro: Quick Return
Perhaps you’re in need of money. Depending on the number and value of the shares you are currently holding, selling them now could make you quite financially comfortable.
Selling off your shares in a one-off sale will pad out your bank account with added cash in just a matter of days. By using an online broker such as sellmyshares.com, you can expect to see the value of your shares deposited into your bank account in as little as three days.
Pro: One Time Brokerage Fee
If money is a concern, selling your shares in a one-off sale is an excellent way to avoid paying repeated brokerage fees. The cost of repeated sales can quickly rack up but, should you make a one-time sale, you’ll save hundreds if not thousands of dollars in brokerage fees.
The average cost of a one-off sale is only around $100. So, even if finances are not a problem, securing the savings of a one-off sale is a good choice. Many entrepreneurs in Australia doing the exact same thing we are talking about here reinvest the money into real estate properties or any other business of their choice.
Con: Your Dividends Could Grow
By selling your shares, you could potentially be losing money in the long run. If the market is improving and your shares show further growth potential, selling them outright may rob you of more money.
Sure, you’ll get a tidy sum up front but it could actually come out to be less than the combined future dividends if your shares continue to mature. If a lack of liquid cash isn’t a problem and the market has shown signs of getting better, it is advisable to hold on a little longer.
In the days before the Internet, selling shares involved a long and drawn-out process that could take weeks. You’d have to set up appointments with a broker, travel to their offices, sign paperwork, and wait for your returns. With a quick one-off online sale, you won’t have to set up an active trading account just to sell your shares. Rather, you can do it all from your sofa.
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