Investor Neither a speculator who takes on high risks for high rewards nor a gambler who takes on the risk of total loss for out of proportion rewards but one whose primary objectives are: The preserva rvation tion of the orig igin inal l in investmen tment A steady y in income Capit ital al apprecia ciation ion
Investme estment nt An asset or item that is purchased with the hope that it will generate income or appreciate ( grow in value) in the future
The Ja Jamaic ica St Stock Ex Exchang nge Provides the market for investor to meet investment.
Years (%) 2009 2010 2011 2012 Annual Inflation Rate 10.2 11.7 6 Fiscal Year Inflation 12.43 13.33 7.84 Return of JSE 3.95 2.28 11.82 Return on Junior 153 97 Average Savings Rate 5.35 2.47 2.13 Range of Average Savings1-10 0.1-8.5 0.1-8.5
The MARKET acts as the conduit to: Attract primary capital by rechanneling cash resources into „productive‟ economic activities thus build up the economy. Enhance job opportunities and wealt lth h cr creatio ion. n. Provide the option of equity financing rather than debt financing. Provid ide e new product ct offerings ings to in invest stors ors Safety, Opportunities, Choice, Access (SOCA)
The Market: : Provides investors with a market where shares traded (capital raising and as investment) and other financial securities are bought and sold Gather the savings of the nation by bringing potential buyers & sellers together Pass the capital on efficiently and securely to the user
The mandate of the JSE is to provide a fair and efficient and transparent stock market. Provide the facilities to enable companies to list and raise capital for financing of new & existing business. Provide an efficient electronic platform which facilitates Secondary Market Activities- Trading of the securities.
The Electronic system is structured and provides : Continuous order-driven process with central market principles. Trading platform which is tightly coupled to a settlement platform.
The Exchange‟s Regulatory Requirements enables a high level of transparency for investors which promotes: Increased confidence in the equities market resulting in greater interest in the market. Member dealers and listed companies are regulated .
The stock market provides for investors in the medium and long-term a means to invest in corporate companies in Jamaica. Capital appreciation of holdings over a period of time often exceeds the rate of inflation. Consistently the Exchange conducts public outreach such as this to advise person on new developments in the market and to get feed back from investors on their concerns. Main, Junior, US Denominated Securities,
Host workshops on different aspect of investor education. Provide a Website which is updated daily. www.jamstockex.com Provide Quarterly and Annual Stock Market Performance Reviews.
Securities must be lodged in the JCSD prior to the transactions in shares (buy/sell) Through the tightly coupled system (horizon/equity) platforms shares are transferred from one participant to another by a double entry system of accounting Brokers must settle transactions on a T+3 basis. There has never been a failed settlement.
JSE provides: A mechanism for the disclosure of information to the public. A channel for aggrieved clients to lodge complaints against broker members Protection for minority share holders Compensation Fund which allows for compensation of aggrieved investors in respect of brokers conduct.
Provides a safe and easy process for the transfer of securities Monitors and liaise with listed companies and registrar to ensure „5 - days‟ turn around of securities. Provides statements to clients in order that customer can monitor their transactions and the value of their investment.
Promote growth of the market Promote and Understanding of the Market and Provide Market Information Provide Access to the Market for clients wanting to invest and Companies wishing to list Listed Companies shares are traded through Authorized brokers Investors buy/sell shares listed on the Exchange through Member dealers who open segregated accounts on behalf of their clients.
Member Dealers opens with client a discussion on proposed investment Member Dealers examines the fundamental of shares such as P.E. Ratio, quality of Companies and provide advice
Discussions with Government and Other Regulatory Authorities is a key function of the JSE which has resulted in: Removal of Taxation on Dividends The Establishment of the Junior Market The approval of Caribbean Stock Exchange network
The Jamaica Stock Exchange provides: Regulation of members & listed companies through Rules & Directives Electronic Trading- ensuring transparency & Efficiency Electronic Settlement System Dissemination of price sensitive information Surveillance system – monitoring of the market The platform for you to invest in listed companies and stay ahead of inflation, preserve your original investment, provide you with a steady source of income and capital appreciation
The general public can receive information on the market through the following channels: Radio & Television Financial Magazines Stock Brokers JSE Website Stock Market Brochures Companies Publications Annual Reports Daily Trade Sheets
George Elliott, famous writer, said: “The strongest principle of growth lies in the human choice” Anonymous: “Life is change. Growth is optional. Choose wisely.”
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