Buying Shares On Jse

If the trader chooses wisely, by reading through company annual reports, keeping track of market-related news, and stay abreast of current affairs, they will stand a good chance of gaining inflation-beating returns from ordinary shares. For the more inexperienced investor, exchange-traded funds (ETFs) are also a good option, giving beginners exposure to a basket of top-performing shares for sale on the JSE.

buying shares on jse

As mentioned previously, investors will need to select a stockbroker if they want to buy shares on the JSE. There are a number of member firms to choose from, and a full list can be viewed on the JSE website.

JP Morgan Chase offers self-directed investing services, which include buying and selling stocks, ETFs, options, mutual funds, and bonds. Chase You Invest Trade is perfect for current Chase Bank customers to simply buy and sell stocks. The multi-account benefits are widespread and include instant transfers, universal login, and $0 trades.

Discretionary brokers have a good knowledge of how to buy shares, and their financial well-being is at stake too. Therefore, investors can usually be assured of some savvy purchases (along with higher commission fees). If a trader decides on taking the non-discretionary route, it is recommended that they identify between 4 and 5 different shares to purchase, as this will offer some diversification. This is important for shielding investors from significant dips in any particular market.

The company has a secondary listing of American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) in the United States of America. The ADRs trade under ticker code SBSW (previously SBGL), following an internal restructuring, as announced on February 24, 2020. Each ADR is equivalent to four ordinary shares.

To buy or sell shares on the JSE you need to open a brokerage account with a stockbroker or contact your local bank for portfolio investments options. ADRs can be purchased via Global BuyDIRECTSM, a Bank of New York (BNY) Mellon-sponsored dividend reinvestment and direct purchase programme.

The Jamaica Stock Exchange operates like other stock markets in the world. You choose a stockbroker, decide on a stock and place your order to buy or sell with your broker. Once this is done, your broker will purchase or sell your shares. The trade is complete when the trade that is placed by a buying broker on the electronic trading platform matches the trade placed by a selling broker where the price matches.

The main reason companies issue shares is to raise capital or money. A company may need start-up capital, to repay debts or to expand. A company may also want to widen its ownership base. When you buy shares you enable the company to carry on business using your money. The number of shares which a company is authorized to issue is set out in its Articles of Incorporation and can only be increased with the consent of shareholders in a General Meeting.

Visit or contact a stockbroker (JSE Member/Dealer). This is a person whose business it is to buy and sell shares at one of the brokerage firms authorized by the Financial Services Commission and the Jamaica Stock Exchange to operate in Jamaica.

Contact your broker and advise him or her to buy or sell shares on your behalf. Give him or her clear instructions, whether orally or in writing. The buying/selling process begins when you place the order with your stockbroker (member/dealer) for a specified number of shares in a company. There are three MAIN types of orders that you can place:

Typically, the broker requires that the buyer has available funds in his/her brokerage account prior to executing an order to purchase shares. Upon completion of the order to purchase, you will receive a contract note that states the company whose stock you have bought or sold, the price paid or received, the commission and other fees and the settlement date.

A stockbroker must obtain a member/dealer license to trade on the Exchange. A stockbroker is a member/dealer of the Exchange and is the direct link between the client and the stock market. Orders to buy and sell shares on the stock exchange are handled by this person. Brokers participate electronically on the Nasdaq trading platform and have advanced tools to assist in handling trades on behalf of their clients. He/she provides Investment advice and completes transactions for persons who wish to buy or sell shares. A commission is charged for the services.

Notably, that recent purchase by Muthanyi Ramaite is the biggest insider purchase of Salungano Group shares that we've seen in the last year. That implies that an insider found the current price of R1.22 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Salungano Group insiders decided to buy shares at close to current prices.

In the last twelve months Salungano Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Salungano Group. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Salungano Group has 5 warning signs (and 2 which are a bit concerning) we think you should know about.

Those following along with Sibanye Stillwater Limited (JSE:SSW) will no doubt be intrigued by the recent purchase of shares by Neal Froneman, CEO & Executive Director of the company, who spent a stonking R9.9m on stock at an average price of R36.31. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.5%.

In the last twelve months, the biggest single sale by an insider was when the Chief Regional Officer of Southern Africa, Richard Stewart, sold R10m worth of shares at a price of R67.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is R37.82. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 416.98k shares for R16m. But they sold 155.00k shares for R10m. Overall, Sibanye Stillwater insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Sibanye Stillwater shares, worth about R486m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like African Rainbow Minerals (JSE:ARI). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

While some insiders did sell some of their holdings in African Rainbow Minerals, one lone insider trumped that with significant stock purchases. Namely, Executive Director H. Mkatshana out-laid R21m for shares, at about R260 per share. It's hard to ignore news like that.

On top of the insider buying, it's good to see that African Rainbow Minerals insiders have a valuable investment in the business. As a matter of fact, their holding is valued at R299m. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 0.6%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.

While insiders already own a significant amount of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. The cherry on top is that the CEO, Mike Schmidt is paid comparatively modestly to CEOs at similar sized companies. The median total compensation for CEOs of companies similar in size to African Rainbow Minerals, with market caps between R37b and R119b, is around R23m. 041b061a72