Capital Markets

When you purchase shares, or equities you become a part owner of the business. This could entitle you to vote at shareholder meetings and allows you to receive any profits that the company allocates to its owners. These profits are referred to as dividends.

What are dividends?

A sum of money paid annually by a company to its shareholders out of its profits .

Where can I buy shares?

Shares can be bought through a broker. You can find them at the following companies

• Motswedi Securities
• Imara Capital Securities
• Stockbrokers Botswana
• African Alliance Botswana Securities
   

These are all under Botswana Stock Exchange.

Why do companies sell shares?

Companies do this for the purpose of raising money they require for growth.

What determines price of shares?

The price of shares can change many times in one day! However an increase in a company’s profit or new venture can increase the demand of the shares thus increase the share price. The opposite could result in an inverse result.

Always Remember

• Shares fluctuate in value on a daily basis.
• When you buy stock, you aren't guaranteed anything
• IPO (initial public offering ) is usually the cheapest price
• Participate in the annual general meeting of the company
• You may sell and buy anytime
• Many advise that its best to ‘’buy low and sell high”
   

Caution

• Make sure you understand the following before you sign;
• Nature, Aim & Benefits of the product
• Risks of the product
• Details about the fund manager
• Fees and charges to be borne by you
• Warnings, exclusions and disclaimers