Did you know that Jamaica has a stock exchange market? Yes, we do, and proudly too! It officially opened in 1969 but formulation started from the year before, in 1968. But...
Who started the Jamaica Stock Exchange Market?
What is the purpose of the Jamaica Stock Exchange Market?
Does the Jamaica Stock Exchange Market really function?
Let me attempt to help you...
Who Started the Jamaica Stock Exchange (JSE)?
The Jamaica Stock Exchange was not started by one person but by a group. The founding members for the JSE were: Mr. William Samms (Arnett and Company Limited), Mr. Raglan Golding (Jamaica Capital Services Marketing Ltd.), Mr. Edward Gayle (Edward Gayle and Company Limited) and Mr. Anthony Lloyd (Pitfield Mckay Ross and Company Limited).
Currently, the JSE's leader is Mrs. Margaret Street-Forrest (Managing Director). Her merit does not come from the MBA degree but rather, her experience in both the public and private sector. In 2016 she was conferred the Order of Distinction in the Rank of Commander (CD) in recognition for her excellent leadership of the JSE.
The Purpose of JSE
The core purpose of the Jamaica Stock Exchange is to offer an alternative for private savings. It exists to help the development of the Jamaican economy through the flow, exchange and growth of capital while providing interest on shares that is acceptable to shareholders. Isn’t that great!
A stock exchange market is also a place where investment is protected from inflation.
Since 2015, the JSE continues to expand the Jamaican economy. I have a video you can watch below on YouTube.
Video: The Impact Of The Jamaica Stock Exchange (JSE) on the Jamaican Economy
What’s the linkage between private investments and the JSE?
Ok, for starters, to clarify a share or equity is buying ownership into a company.
So for example, if a company offers 10,000 shares and you buy 2000 this would mean that you own 20% of the company. In the case of ItelBPO since it is growing, if you own 20% of the company let me know and we be friends- just joking.
But seriously, this is how a stock market functions, investors earn from the profits made on purchasing shares, also known as stocks.
Now there are two main types of stock or shares.
There is the ordinary stock which pays interests based on profits and company cash available. In this case, the holder (the person who owns the stock) has no voting rights in the company’s decision-making. Not so much my style… I would want a vote in my money’s direction :-)
Some ordinary shareholders have voting rights but that is dependent on the company and special conditions.
Then there is preferential stocks with a fixed interest rate on investments. The owners of these stocks vote on business direction.
Unfortunately, if the business is in a state of emergency they also do not have a vote. Preferential stockholders can demand their interests whether the business makes a profit or not, unlike the ordinary shareholders.
And both are available in Jamaica! So, are you ready to invest? Here is how you do it!
How to Buy Shares?
First, research the company you would like to purchase the shares using their financial statements.
Contact one of the stock brokerage companies authorized by the Financial Services Commission and the JSE.
Open an account with the company of choice.
Please note you will need a Taxpayer Registration Number (TRN) nationality, name, date of birth, employment information and number of dependents information.
Develop a risk profile which is needed for investment planning.
This will also need valid identification and a recommendation. A risk profile is dependent on the company the stocks are being purchased from.
Purchase the stocks through the broker.
Please be mindful that you may be asked to make a deposit on the order of the shares.
By the way, here are a few more details about stock purchasing, I think you'll appreciate this...
You can go with a market order which means that the broker buys shares at the prevailing market price.
There is also another order of purchase, a limit order, and that means the broker must not exceed a certain amount of money for the stocks set by you.
Also, there is a stock order where an approximate price and not a definite price for the shares is used.
Once the stocks are purchased, then a contract is sent with details such as: name of company, quantity of stocks, price of stocks, general consumption tax (GCT), exchange cess and commission.
Again another important note: transactions are done either by cash or cheque and must be settled within three days of initial purchase as Jamaica functions under the T+3 system.
For enquirers or further information on the Jamaica Stock Market, here is their contact information below.
If you prefer to see more though, click here to get the full list of companies on the Jamaica stock exchange.
I hope this helps!
Cayman Islands Stock Exchange. Background taken from https://www.csx.ky/aboutus/overview.asp
CNBC. 2018. Will Stock Investors Ever Profit from a More Open Cuba? Taken from https://www.cnbc.com/2015/05/01/investors-ever-profit-from-a-more-open-cuba.html
Graham, Neville. 2018. ItelBPO Exploring Listing on the Jamaica Stock Exchange. The Jamaica Sunday Gleaner taken from http://jamaica-gleaner.com/article/business/20181125/itelbpo-exploring-listing-jamaica-stock-exchange
Hall, Oran. 2017. Financial Adviser: How to Buy Stocks on the Jamaican Market The Jamaican Sunday Gleaner taken from www.jamaica-gleaner.com/article/business/20170219/financial-adviser-how-buy-stocks-jamaican-market
Investopia. 2018. List of the Major Stock Exchanges in the Caribbean taken from www.investopedia.com/articles/investing/071415/list-major-stock-exchanges-caribbean.asp
Jamstockex. 2016. Jamaica Stock Exchange Opens Toronto Stock market, May 24, 2016 taken from https://www.jamstockex.com/845589-2/
Jamstockex. 2018. Frequently Asked Questions taken from www.jamstockex.com/about/frequently-asked-questions-jse/
Jamaica Information Service. 2018. Jamaica Stock Exchange-Fueling Economic Growth taken from https://jis.gov.jm/videos/jamaica-stock-exchange-fueling-economic-growth/
Northern Ireland Business Information.2018. Company Shares and Shareholders taken from www.nibusinessinfo.co.uk/content/types-shares
Trinidad and Tobago Stock Exchange. 2018. History of the Trinidad and Tobago Stock Exchange taken from https://www.stockex.co.tt//controller.php?action=content&id=11
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About The Author
A patriotic Jamaican who adores his culture, Wellesley has been using this medium to share what he calls 'the uniqueness of Jamaica with the world' - since April 2007.
To date, he serves over 8,300 unique readers / viewers per day.
His efforts have earned him featured positions in local publications, including the Jamaica Gleaner's Hospitality Jamaica, Carlong Publishers, as well as recognition from numerous prestigious international agencies and universities.