How to Invest in Jamaica’s Stock Market
by by Kadian Clarke
Over the last few years, the Jamaica Stock Exchange (JSE) continues to make the headlines across the world as one of the best peforming stock markets, full stop!
Just last October, Bloomberg reported that "Jamaica’s spectacular stock market rally, the world’s biggest over the last five years, shows no sign of losing steam." And by January 18 this year ther BusinessWeek headline was "Welcome to Jamaica, Home of the World’s Best-Performing Stock Market"
It is no surprise then to see the big interest in purchasing stocks on the Jamaica Stock Market.
What are stocks though?
Stocks, otherwise known as shares is the ownership interest in a company.
People purchase shares for various reasons but the main reason is to generate profitable returns on their investment; to make more money :-)
If you reside overseas, with these simple steps, you too will be able to invest in the Jamaica stock market.
So Where do I Begin?
The first order of business is that you will need to contact a stock broker.
The stockbroker is a person who liaison between the investor and the stock market.
The Jamaica Stock Exchange (JSE) website www.jamstockex.com provides a list of the approved stock brokers that you can use.
The stockbroker will dicuss your preferred way of trading with you.
Youar are then required to open an account and complete a client agreement form - which must be printed, signed and sent to your brokerage company.
This form is also available online.
Other Documents Required
In addition to the client agreement form, you are required to provide two references, proof of your address and a notarized copy of your identification card.
If you reside in the United States, a copy of your social security card must be provided and if you are a Canadian resident, a copy of your social insurance card must be submitted.
Thanks to the internet, investors have the privilege of conducting their trading online via the internet.
And, since you will still need a stock broker to carry out your transaction, if you decide to trade online, he /she will be the one to open your account.
How to make the payment
Making payment is probably the most important part of the transaction.
Here’s how it’s done.
You are required to create an account with the Jamaica Central Securities Depository (JCSD ) a wholly owned subsidiary of the Jamaica Stock Exchange. Technically, it is an electronic account that holds securities for investors until the transaction is complete.
Please feel free to speak with your broker about the requirements to open this account as it is mandatory.
You also have the option to submit an online request after you have registered.
Usually, this account is opened 72 hours of submitting documents to your broker. However, the account is activated when the broker submits the documents to the JCSD.
Trading Days and Time
Offline Trading takes place from Mondays to Fridays at 9:30 am to 1:00 pm whereas online trading is done seven days a week.
Remember though... before the trade can take place, you must upload funds to your online account.
Note also that trading is done only in Jamaican dollars and the minimum shares that can be bought are 100 units.
After you have made your purchase, it is easy to get anxious about the payment as to whether or not it was successful.
It is quite normal to feel that way. However, rest assured that you will receive confirmation from your broker as soon as the transaction is complete.
For online traders, a confirmation page will be given to you with all the relevant details.
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Until next time…