Differences between Investing vs Trading
Differences between Investing vs Trading
Siemens AG is a German multinational conglomerate company headquartered in Berlin and Munich. It is one of the largest engineering companies in the world with branch offices abroad.
The company was founded by Werner von Siemens and Carl Wilhelm Siemens in 1847, based on the invention of the telegraph by Carl Wilhelm. The company first expanded its activities into electrical engineering and subsequently also became involved in other areas such as medical diagnostics, transportation, and building technology.
Siemens AG is a publicly traded company; its shares are listed on several stock exchanges, including the Frankfurt Stock Exchange, the New York Stock Exchange, and the London Stock Exchange. The company is also a component of the Euro Stoxx 50 stock market index.
The Siemens share price history shows that the company has been through some tough times in recent years, but it has always managed to emerge victorious. The company was hit hard by the global financial crisis in 2008, but it quickly recovered and was soon back to its winning ways. The company has also been through some other challenges in recent years, but it has always managed to overcome them.
In early 2020, Siemens AG shares were trading at around €105 per share. However, the COVID-19 pandemic caused a sharp decline in the share price, with the stock falling to a low of around €62 per share in March 2020. Since then the share price has been on a steady upwards. The trend has continued into 2021, with the share price reaching new highs in February and March. Check out the chart above for more about Siemens share price.
There are a few key differences between investing in and trading Siemens shares CFDs. Firstly, when you invest in Siemens shares, you are buying a stake in the company and become a shareholder. This means that you are entitled to dividends and have a say in how the company is run. However, as a shareholder, you are also exposed to the risks of the company's performance. If Siemens shares fall in value, you could lose money.
When you trade Siemens shares CFDs, you are speculating on the price movement of the shares. You don't own the underlying asset and so don't have any rights or responsibilities as a shareholder. However, this also means that you can take advantage of both rising and falling markets. If the price of Siemens shares falls, you can make a profit by selling your CFDs.
The other key difference is that when you invest in Siemens shares, you will need to pay the full value of the shares upfront. When you trade Siemens shares CFDs, you only need to put down a small deposit, known as a margin. This allows you to trade with leverage, which means you can control a larger position than the amount of money you have invested. However, it also means that your losses could be greater than your initial deposit.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Which are the competitors of Siemens shares?
Some of the main competitors for Siemens shares include: General Electric, Hitachi, Toshiba, and Alstom. These companies are all large conglomerate conglomerates with a wide variety of businesses and products. They each have a strong presence in many different industries, including the electrical engineering and electronics sectors. While Siemens and Alstom may have a strong market share in Europe, these other companies have a much larger global reach.
Who owns most Siemens shares?
The majority of Siemens shares are owned by institutional investors. The largest shareholder is BlackRock, Inc., with a 6.4% stake. Other major shareholders include Capital Research Global Investors (5%), Norges Bank Investment Management (3.9%), and Vanguard Group, Inc. (3.6%).
Individual shareholders own a small percentage of Siemens shares; the company has over 3 million individual shareholders. The Siemens Foundation, a charitable organization established by the company, is the largest shareholder among individuals, with a 0.8% stake.
Do Siemens shares pay dividends?
Siemens has a long history of paying dividends to shareholders, and the company has increased its dividend payments for each of the last five years, except for in 2020, 3.50€ per share was paid and it went up to 4.00€ per share in 2021. Siemens shares have a dividend yield of 2.7% in 2021.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.