Market Status: Closed
  Saturday, 20 Oct '18
   17:15:51 (BST)

FAQ

WHAT IS A SHARE?

A Share is a portion of ownership in a company.

WHY INVEST IN THE STOCK MARKET?

There are 3 rationale for stock investing:

1. Ownership in a company - when an individual invests in the stock market, he automatically becomes a stockholder of a particular listed company. As a stockholder, he is entitled to the following benefits:
a. voting rights;
b. dividends to be declared by the corporation;
c. share of the remaining assets of the company if it is to be liquidated.

2. Liquidity of Funds - a stock market investor has an easier access to funds. He can always cash in or out his funds anytime, during trading hours, through his broker.

3. Make money - investors in the stock market make money through dividends and capital appreciation. When a listed company declares dividends, its shareholders increase their investing power. An investor who buys into the company at a low market price and sells it at a higher price will gain capital appreciation. . Basically the rewards will increase whenever the company does well and its share price goes up. Internal and external factors will contribute to the volatility of share prices as well.

WHY SHOULD I TRADE SECURITIES THROUGH THE CSE MEMBER FIRM?

Because investors can be assured of the company's facilities, qualified officers, and other services. CSE is also responsible for the company's transparency and fairness. Should a member firm fail to comply with the Exchange's regulations, CSE has the right to punish the member firm.. The Exchange will screen it finally. Once it becomes CSE's member, it has to confirm to CSE's rules and regulations

IS THERE ANY RISK INVOLVED IN INVESTING?

While it is true that stock investment is the most volatile of all securities, investors might well remember that uncertainty is a permanent feature of the investing perspective. This means that risk is always a part of any investment. A better attitude would be to limit and manage your risk. A maximum level of gain or loss should be set, and calculated decisions should be made when this level is reached.

WHAT IS THE MINIMUM AMOUNT OF INITIAL INVESTMENT?

The minimum amount of money needed to invest in the stock market depends on the minimum number of shares to be traded for the stock. For each stock, the minimum number of shares to be traded is fixed and depends on the price range of the stock.

HOW DO I CHOOSE MY BROKER?

An individual investor should choose a retail broker, preferably one that meets his requirements in terms of services needed. It is important that the investor should trust his broker and that he is satisfied by the services it is giving him, such as market reports, quality of advice regarding stock selection and timing of purchases and sales, on-time delivery of important documents and other services.

HOW DO I KNOW THAT MY ORDER HAS BEEN EXECUTED? WHAT HAPPENS AFTER THE EXECUTION OF ORDER?

Trading orders are more often done through the telephone. Investors' buy or sell orders are relayed to the broker's authorized traders on the trading floor. In an automated system as in CSE, the order is keyed in through a trading terminal and automatically matched.

Verbal confirmation of executions is made as soon as possible and subsequently an official confirmation or invoice is delivered to the client.

WHAT IS THE MEANING OF "PROXY"?

"Proxy" is a written authorization given by a shareholder to a person who represents him/her and votes for him/her at shareholders' meeting.

IS IT THE CSE'S REQUIREMENT THAT ALL COMMON SHARES SHOULD PAY DIVIDEND?

No. Dividend payment depends mainly on the resolution of the company's board of directors.

WHAT IS INDEX?

An index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value.