My class of COMM3248, 2016 – Entrepreneurial Skills in the Communication Industry went on a site visit yesterday, April 26 to the Jamaica Stock Exchange (JSE) which enabled us to gain some insights on the stock market as another financing option. The JSE is designed to encourage & promote investments in Jamaica’s entrepreneurship, employment & economic development. The trading of stocks entails an option to buy and sell whether as an individual or company & this is done in an arena with strict regulations. This is for the protection of us as investors. Owning stocks means you own a piece of a company (part owner). Once you own shares/stocks in a company, you are considered as a “share/stock holder.” These companies are listed on a local, regional & global basis which forms the core of JSE. It is the oldest stock market in the English-speaking Caribbean.
- Buyers – Investors
- Sellers – Listed Companies
JSE forms a vital link between companies needing capital & ourselves with money to invest. Stocks can be referred to as equities or shares which is bought or sold by a licenced Broker (Agent). There is a brokers fee which is charged as a commission for their service. There is a listing online of the listed instruments (companies) of which you may visit too – https://www.jamstockex.com/. I found 138 Housing Student Housing (UWI) in the listing which surprisingly is a limited company. As a prospective investor, you need to investigate your list of potential companies that seem favourable to you. Seek professional advice from a broker or a qualified person. Carefully check their financial background which is crucial for your future investment. After purchase of shares; you have to monitor & track your investments & that would comprise learning how to read basic financial statements & publications. Shareholders can benefit from the following:
- Growth of his/her shares overtime. The shares can be worth more than what you paid for them initially – Price Appreciation.
- Gain Capital
- Can receive income through dividends (earnings such as profits) which is paid by the company annually, bi-annual or quarterly.
- Shareholders get voting rights – Annual General Meeting; which allows them to air their grouses or know what is happening within the company.
If interested in buying and selling stocks, you are advised to open an account & I would suggest one specifically for this transaction only. Only accounts are used to buy/sell shares.You can buy or sell over 100 plus shares at any time; nothing below this amount is permitted. Kindly note that there are winners and losers daily, based on your individual trade. The time of trade commences from 9:30 am to 1:00 pm. on a weekly (Monday to Friday) basis at JSE.
There may be blackout periods for listed companies, affiliates and joint holders from buying or selling shares during this period. This is as a result of a suspension of shares or a delisting.
Special thanks to Sharlette Edy-Nugent who conducted the presentation given. It was well presented.