How do Equities work?

Equities, often referred to as stocks or shares, represent ownership in a company. When you own equities in a company, you have a claim on a portion of that company’s earnings. Shares are sold to investors and traders to raise capital for the company.

Many businesses issue shares when they need funds for research and development, expansion or other growth opportunities.

What we offer

We provide access to an extensive selection of over 2,000 Australian shares. From renowned blue-chip companies to emerging small-cap stocks and everything in between. Invest in international companies with access to over 10,000 global shares and exchange-traded funds (ETFs) through nabtrade. Diversify your investments across borders and industries, all with our user-friendly platform.

As a NAB Private Wealth client, you’ll also receive access to nabtrade Premium, opens in new window. An exclusive service connecting you to an array of opportunities, insights and events, all whilst being supported by our nabtrade Premium team.


Shares can be a sound investment, are easy to trade and offer a range of advantages.

Potential for capital growth

Shares have the potential to increase in value over time. If you buy shares at a lower price and their value rises, you can sell them for a profit, allowing your capital to grow.

Earn regular income

Holding shares in dividend-paying companies can provide you with a regular income stream. Shareholders who receive franked dividends can use the associated franking credits to reduce their personal income tax liability.

Greater liquidity

Shares are generally liquid investments, meaning you can buy and sell them on stock exchanges, providing easy, cost-efficient access to your invested capital.


It’s important to note that while shares offer certain benefits, they also come with risks, including the potential for losses if share prices decline.

Market risk

Equities can experience price fluctuations due to market sentiment, economic conditions and company-specific factors.

Liquidity risk

There may be instances where you’re unable to sell your shares due to very low trading volumes or if a company enters a trading halt.

Currency risk

If investing in overseas shares, it’s important to consider the potential impact of unfavourable fluctuations in currency exchanges rates. These can significantly influence the overall returns and risks associated with the investment. 

Equities profile

Eligibility requirements

  • You must be a resident in Australia
  • The minimum investment amount is $500 AUD for an Australian Securities Exchange (ASX) listed company via nabtrade, opens in new window.
  • There are no minimums for some international exchanges.

Investment type

  • Ownership in publicly traded companies

Return profile

  • Income from dividend payments
  • Growth

Investment horizon

  • Equities are often viewed as long-term investments, typically held for five years or more to benefit from compounding returns

To further explore the equity investment options available, please speak to your Investment Specialist, call our Investor Desk or learn about nabtrade, opens in new window.

How to build a share portfolio

When starting out, you need to determine what you want your share portfolio to achieve. Do you want it to deliver a stream of income that over time will help you be financially independent? Or are you looking for capital gains and expect any dividends received to be directed back into dividend reinvestment schemes to help build your portfolio?

Explore private investment insights

Discover more about Equities from our experts.

Contact us

Talk to a specialist

To explore investment opportunities, contact your investment specialist or call our Investor Desk.

Call us on 1300 683 106


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Send us an email enquiry and one of our team members will get back to you.

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Discover the latest thinking on investment insights, strategies and market commentary.

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The information on this website is general in nature and based on information available at the time of publishing, information which we believe is correct and any forecasts, conclusions or opinions are reasonably held or made as at the time of publishing. The information does not constitute financial product or investment advice. Past performance is not necessarily indicative of future results. No warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 or any of its related entities accept liability to any person for loss or damage arising from the use of this information.

You should consider the relevant Product Disclosure Statement and Financial Services Guide (available on request) before deciding whether to acquire, or to continue to hold, any of our products. Target Market Determinations for these products are available at and, opens in new window. Fees and charges are payable. Terms and conditions apply and are available on request from NAB. Our credit products are subject to eligibility and lending criteria.

All products and services mentioned on this website are issued by National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 (NAB), except wealth advice services, which are provided by JBWere Limited ABN 68 137 978 360 AFSL No. 341162 (JBWere), and nabtrade, which is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities). JBWere and WealthHub Securities are wholly owned subsidiaries of NAB.

WealthHub Securities’ and JBWere’s obligations do not represent deposits or other liabilities of NAB. NAB does not guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. You may be exposed to investment risk, including loss of income and principal invested.

Information correct as at January 2024.

©2024 NAB Private Wealth is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. ©2024 JBWere Limited ABN 68 137 978 360 AFSL No. 341162. ©2024 WealthHub Securities Limited ABN 83 089 718 249 AFSL 230704.