The argument for investing versus saving has been repeatedly proven when it comes to putting your hard-earned cash to work for you. Many people will tell you how money market instruments such as stocks, bonds and certificates of deposits have allowed them to reap significant returns on their investments. While these methods of investment have been around for a long time, not many people in Jamaica have taken advantage of them. However, with the increase in prominence and popularity of the Jamaica Stock Exchange, and the frequency with which Initial Public Offerings (IPOs) are now coming to the market, stock buying among regular individuals, has become increasingly popular.
A stock is a share in the ownership of a company which represents a claim on the company’s assets and earnings. Stocks may be bought through stock brokerage firms, the options are many as Jamaica has several firms. The Jamaica Stock Exchange (JSE) handles the trading of the shares and ensures that the companies listed on the exchange follow the required rules and regulations.
The Jamaica Central Securities Depository (JCSD) facilitates electronic clearance and settlement of trades and offers shareholders the ability to view their accounts via the internet. The JCSD is also responsible for the safe keeping of physical certificates for equity and fixed income securities. The JSE is comprised of the “Main Market” and the “Junior Market”. The Junior Market allows investors to put capital into legitimate small and medium sized companies (SMEs) whose shares trade on a special JSE platform. This represents an exciting opportunity for SMEs to raise capital, and to contribute to the growth and development of the Jamaican economy. This opportunity exists through an Initial Public Offering IPO.
So how exactly does an individual make money investing in stocks? There are generally two ways to make money on stocks. The first is when a company pays a portion of its profits to a shareholder in the form of dividends; or when a stock you own appreciates in value – in other words, when the stock’s price goes up, which means people are willing to pay you more for your shares than you paid for them.
To Read More: Purchase your copy of Volume 9 #7 March-April 2018
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The argument for investing versus saving has been repeatedly proven when it comes to putting your hard-earned cash to work for you. Many people will tell you how money market instruments such as stocks, bonds and certificates of deposits have allowed them to reap significant returns on their investments. While these methods of investment have been around for a long time, not many people in Jamaica have taken advantage of them. However, with the increase in prominence and popularity of the Jamaica Stock Exchange, and the frequency with which Initial Public Offerings (IPOs) are now coming to the market, stock buying among regular individuals, has become increasingly popular.
A stock is a share in the ownership of a company which represents a claim on the company’s assets and earnings. Stocks may be bought through stock brokerage firms, the options are many as Jamaica has several firms. The Jamaica Stock Exchange (JSE) handles the trading of the shares and ensures that the companies listed on the exchange follow the required rules and regulations.
The Jamaica Central Securities Depository (JCSD) facilitates electronic clearance and settlement of trades and offers shareholders the ability to view their accounts via the internet. The JCSD is also responsible for the safe keeping of physical certificates for equity and fixed income securities. The JSE is comprised of the “Main Market” and the “Junior Market”. The Junior Market allows investors to put capital into legitimate small and medium sized companies (SMEs) whose shares trade on a special JSE platform. This represents an exciting opportunity for SMEs to raise capital, and to contribute to the growth and development of the Jamaican economy. This opportunity exists through an Initial Public Offering IPO.
So how exactly does an individual make money investing in stocks? There are generally two ways to make money on stocks. The first is when a company pays a portion of its profits to a shareholder in the form of dividends; or when a stock you own appreciates in value – in other words, when the stock’s price goes up, which means people are willing to pay you more for your shares than you paid for them.
To Read More: Purchase your copy of Volume 9 #7 March-April 2018
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