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This guide provides insight into investing in the Johannesburg Stock Exchange (JSE) equity market, focusing on the electronic trading process that has evolved since 1996. It explains how to start investing, the role of stockbrokers, and the importance of analyzing company profits and share price growth. Readers will learn about the mechanics of placing buy and sell orders through brokers, how these orders match in the market, and how both buyers and sellers are compensated for their trades. Start your investment journey with confidence!
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JSE Equity Market How do I invest?
To Electronic Trading…1996 Where does trading take place?
How do I invest? Buyer
How do I invest? I’ll look at the companies’ profits and how well their share prices have grown. So many companies. Where do I start? I can always ask my stockbroker for advice Buyer
How do I invest? Hmm…Sasol shares look like a good investment Stockbroker Buyer
How do I invest? I can also give my client advice… Stockbroker
The JSE then sends this order, via a communications lines, up to London How do I invest? I must get the best price for my client Stockbroker
A South African investor, wants to sell her shares At the same time… My investment has done well…I think I’ll sell Seller
She places a SELL order for her shares with her stockbroker At the same time… I can also give my client advice… Stockbroker Seller
Her broker then sends that order electronically into the JSE market How do I invest? I must get the best price for my client Stockbroker
The BUY and SELL orders MATCH and a TRADE happens A Trade I BOUGHT my shares! I SOLD my shares! Seller Buyer
The Result Stockbroker And…we were both paid for our services! I got my SHARES! I got my MONEY! Stockbroker Seller Buyer
Through a stockbroker The Share…and many others At the best agreed price So what happens? Buyer Seller