Some of the best stocks to buy in the UK

A stock is a share in the ownership of a company. When you buy shares in a company, you become a part-owner of that business. Owning shares makes you entitled to a share of the profits (or losses) that the company generates. Shares are bought and sold on stock markets.

The UK’s primary stock market is the London Stock Exchange (LSE). It is where most big UK companies are listed and where most share trading occurs. Other exchanges include the Alternative Investment Market (AIM) for smaller companies and international exchanges such as the New York Stock Exchange (NYSE) and Nasdaq.

BP

BP is one of the world’s largest oil and gas companies. It has operations in more than 70 countries and employs around 80,000 people. The company is significant in the oil and gas industry, focusing on exploration and production.

BP’s share price has been under pressure recently due to the fall in oil prices and the Deepwater Horizon disaster in 2010. However, the company has made a strong recovery and is now one of the best-performing stocks on the London Stock Exchange.

GlaxoSmithKline

GlaxoSmithKline is a British-based pharmaceutical company with operations in over 100 countries. It is a significant player in the global pharmaceutical market, focusing on research and development.

GlaxoSmithKline’s share price has been under pressure recently due to the global economic downturn and the patent expiry of some of its essential drugs. However, the company has historically been one of the best-performing stocks on the London Stock Exchange and will have no trouble making a recovery.

Royal Dutch Shell

Royal Dutch Shell is among the world’s largest oil and gas companies. It has operations in more than 90 countries and employs around 90,000 people. The company is significant in the oil and gas industry, focusing on exploration and production.

With a strong historical record, Royal Dutch Shell is a large company that has been relatively stable and is not likely to experience any serious turmoil.

HSBC Holdings

HSBC Holdings is one of the world’s largest banks, operating in over 70 countries. The company is a significant participant in the global banking industry, focusing on retail and commercial banking.

HSBC stocks have been relatively stable. As a stronghold in Asia, the bank also has over $10 trillion in assets under custody and nearly $5 trillion in assets under administration. Branching into fintech, HSBC has made strides in the area as well. This makes a strong case for anyone who would like to invest in a continually developing sector.

Vodafone Group

Vodafone Group is a British telecommunications company with operations in over 50 countries. The company is a significant participant in the global mobile communications market, focusing on voice and data services.

With a market capitalisation of over $40 billion and offices on almost all of the continents, Vodafone is a valuable company that is very much worth investing in, if you are keen on technology and telecommunications.

Unilever

Unilever is a British-based company with operations in more than 190 countries. The company is a significant participant in the global consumer goods market, focusing on food, home and personal care products.

Unilever is a good investment for those who would like to diversify their portfolio across industries. It also has had a fairly strong stock price in the past and continues to be stable.

Diageo

Diageo is a British-based alcoholic beverage company operating in over 180 countries. The company is a significant participant in the global alcoholic beverage market, focusing on spirits and beer.

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