We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byMakenna Hamming
Modified about 1 year ago
Copyright© JSE Limited WORKINGS OF THE JSE 7 February 2009 Waldemar Budeli
© 2 WHAT IS THE JSE What is not JSE: - Not a bank or an insurance house - Not a gambling resort/ pyramid scheme - Not a get rich quick scheme - Not big brother to listed companies - Not Government Agency - Not Rich & Famous Club What we are: - A market where shares bought and sold - Place where primary capital is raised by listed companies - A company owned by its shareholders
© 3 HISTORY OF THE JSE Founded in November 1887 Trading between the chains Open outcry (market floor) trading ended in June 1996 Relocated to Sandton in 2000 Demutualised on 1 July 2005 Owned by shareholders Listed on 5 June 2006
© 4 REGULATORY FRAMEWORK SARB: Banking Financial Services Sector Banks Building Societies FSB: Non Banking Financial Services Sector Capital Markets Insurance Houses Retirement Funds Collective Investment Schemes Friendly Societies
© 5 JSE & ECONOMIC SYSTEM Companies in search of primary capital issues shares through the market The market is the place where shares traded (capital raising and as investment) and other financial securities are bought and sold Gather the savings of the nation by bringing potential buyers & sellers together Pass the capital on efficiently and securely to the users Employment opportunities Wealth creation
© 6 FUNCTIONS OF THE EXCHANGE Company allots shares to the public to raise capital and the proceeds of the sale are used by the company to establish or expand its business The provision of an orderly market to facilitate the secondary trade of listed securities between buyers and sellers, in terms of Rules and Regulations of the JSE, with due protection for all parties concerned.
© 7 WHAT ARE SHARES Shares represent ownership in a company Holding a company’s shares means you are one of the many owners (share holders) If a company does well (profitability), then the share price could potentially rise and some companies may choose to pay dividends Likewise if a company is not doing well (losses) then its share price could potentially fall, and it might not be able to declare a dividend (situations differ from company to company)
© 8 Benefits of investing in shares Capital Income ( dividends ) Capital Growth ( the difference between price paid and the selling price) Right to attend meetings and vote Right receive company information ( financial statements, etc )
© 9 INVESTING IN SHARES First and foremost : It is very Important to understand the difference between LISTED and UNLISTED SHARES Listed shares are trading on the JSE Unlisted shares are issued and trade outside the market Investing in shares is about creating wealth or growing your savings (capital growth and capital income)
© 10 METHOD OF TRADING Prior March Market floor June 1996 – Johannesburg Equities Trading (JET) System –an automated Trading Extremely reliable & providing optimal investor protection Efficiency and equal participation of all players (large and small) Dual Trading (Agent or Principal) May 2002 – JET system changed to JSE SETS System - Functional Segments & Sections In April 2007 – TradElect replaced SETS system
© 11 JSE MARKETS & PRODUCTS Equities – Shares, ETF’, Financial Derivatives – SSF, Warrants Agricultural Derivatives – Yellow Maize, Soya, Beans Yield-X – linked to interest rate bearing instruments
© 12 LISTING CATEGORIES Main Board Development Capital Market (DCM) – 1984 This board is closed to new companies since 2003, however in share price pages this board is shown. Venture Capital Market (VCM) – 1989 This board is closed to admitting new companies since 2003, however in share price pages this board is also reflected. Alternative Exchange (ALTX) 2003 In essence 2 boards exists: Main Board and Alternative Exchange
© 13 MAIN BOARD REQUIREMENTS R subscribed capital equity shares in issue 3 years profit history (R before taxation)
© 14 BULL AND BEAR MARKET Downwards trend Upwards trend
© 15 The JSE provides… Regulation of members and listed companies through the Rules & Directives Electronic Trading (JSE SETS) – ensuring transparency & efficiency Electronic Settlement System guarantees settlement SENS – dissemination of price sensitive information Surveillance system – constant monitoring of members and their trading activities
© 16 International economics Company profits Commodity and gold prices International markets Politics Local economy THE MARKET Major Market Influences - Demand & supply - Inflation - Interest rates - Unemployment - Environmental factors *floods *drought *fires, etc - Crime rate - What they say - Political state - Exchange rates -Global economies
© 17 STOCK BROKERS Agents in trading Advice for the selection of securities Advice for the buying & selling (time) Research-based advice
© 18 Investing Responsibility Do not borrow to invest Always invest in what you know Do some homework on the company : Challenge! Buy the business, not the share Regularly review return on investments Be an active Shareholder – Know your rights Exercise patience, but do not get married to your share Diversify – do not put all your eggs in one basket Take calculated risk Make use of your stockbroker
© 19 Sources of Stock Market Information Daily Newspapers Radio & Television Financial Magazines Annual Reports Stock Brokers JSE Monthly Bulletin Stock Market Handbooks Companies Publications
© 20 Questionnaire Link Why should I complete this survey? As a member of Judicial Officers Association, YOU are representatives of the retail market. We would like to ask your HELP with this initiative. Your participation will help us to develop Education programs tailored to YOUR investment knowledge needs. So, it’s VERY important that you are HONEST. Your results will make the difference! What is the survey about? We would like to learn whether YOU save or invest, how much YOU know about investments and whether you’re interested in investing. Please tell us! Please submit your completed survey by latest 27 February. Please follow the link to complete the survey: practitioners-copy If this link does not open, copy the link into an Internet browser. Thank you and enjoy!
Copyright© JSE Limited Thank you JSE Education Division Tel (011) /8/9 Fax (011) Web :
INVESTMENT acquisition of capital assets, (buildings, machinery, stocks, bonds and shares) SHARES part ownership of a company BROKER licensed.
The Stock Market 3.1 STOCK MARKET BASICS. Objectives.
Copyright © 2005 JSE Limited Presentation on JSE LIMITED to ASEA CONFERENCE 10 th – 12 th September 2005 By Geoff Rothschild Director Marketing – JSE Limited.
1 Presenter Date How to Start Investing Ana Forssman.
Copyright© JSE Limited JSE – Africa’s premier exchange Noah Greenhill Senior General Manager: Marketing, JSE Ltd 4 March 2008 Mine Africa.
Chapter 11: Financial Markets Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 11, Section 3 Objectives 1.Identify the benefits and risks.
Stocks, Bonds, and Futures Why Buy Stock? Gain a Profit Limit the Risk on their investment Become a part of a corporation Profit Potential Capital gain-
Chapter 9 Section 3 Stocks, Bonds, and Futures Bw6FyPf34.
Chapter 11 Sections 3 & 4. Buying and Selling Stocks Companies issue stock and sell to investment bankers in primary market Initial public offering (IPO)
Investing Chapter 9. Investing Risk The chance that an investment will decrease in value Return The income you earn on an investment RATE OF RETURN.
An Overview of the Financial System chapter 2 1. Function of Financial Markets Lenders-Savers (+) Households Firms Government Foreigners Financial Markets.
Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 19 1 CHAPTER Saving and investment planning Stock investments.
Investment Vocabulary. Stock Market A market in which the public trades stock that someone already owns; the buying and selling of stock.
STOCKS AND STOCK MARKET Vypracovala: Zuzana Kunzová.
The Stock Market What you need to know to begin investing.
Chapter 15: Financial Markets Opener. Copyright © Pearson Education, Inc.Slide 2 Chapter 11, Opener Guiding Questions Section 3: The Stock Market –How.
Money Investments What is an investment? Investment is something bought for future financial benefit. Promotes economic growth Contributes to wealth.
Research Via Financial Services. About us Research via is a leading financial services provider with presence in Indian and other global capital markets.
Savings – income not used for consumption Investment – the use of income today that allows for a future benefit Financial System – all the institutions.
Financial Markets Chapter 11 Section 3 The Stock Market.
The Stock Market Economics. Vocabulary Investment: act of redirecting resources from being consumed today so they may create benefits in the future. Mutual.
Financial Markets: Saving and Investing Investment Financial System Financial Asset Financial Intermediary Mutual Fund Diversification Portfolio Prospectus.
Pg Investing in Stocks. Investing in Stocks 1. How is investing in stocks different than investing in bonds? ◦ Bond investors lend money to a.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
EQUITY MARKETS Sokolova Ksenia. EQUITY MARKETS: DEFINITION The market in which shares are issued and traded, either through exchanges or over-the-counter.
Economics. October 24, 1929 Black Thursday Stock Investment that shows ownership.
Financial Markets. Section 1 Investment- the act of redirecting resources from being used today so they can be used to create future benefits When.
CDA COLLEGE BUS235: PRINCIPLES OF FINANCIAL ANALYSIS Lecture 2 Lecture 2 Lecturer: Kleanthis Zisimos.
GBUS502 Vicentiu Covrig 1 Financial Markets and Institutions (chapter 2)
Chapter 11 Section 3 – The Stock Market. Buying Stock Stock or Equities – Represents ownership in a company Issued in portions called shares – Help corporations.
Chapter 11 Financial Markets. CHAPTER 11 Section 1.
FrontPage: Turn in Savings Calculator webquest from yesterday if you did not do so. The Last Word: Ch 11 Review and Unit 4 Test - Tuesday.
An Overview of the Financial System chapter 2. Function of Financial Markets Lenders-Savers (+) Households Firms Government Foreigners Financial Markets.
Chapter 11 Section 3. Share: portion of stock Equities: claims of ownership in a corporation.
The Stock Market Chapter 11 Section 3. Buying Stock Besides bonds, corporations sell stock to raise money Stocks are issued as shares Stocks are also.
Economics Stocks and Bonds. Securities Securities refers to bonds, stocks and other documents that are sold by corporations and governments to raise large.
Investing In Stocks Chapter 31. Today’s Schedule Tuesday’s Quiz Review Tuesday’s Quiz Review Assignment of Homework Assignment of Homework Chapter 31.
FINANCIAL MANAGEMENT I AND II The Scope of Corporate Finance.
Chapter 3 Overview of Security Types. 3.1 Classifying Securities The goal in this chapter is to introduce you to some of the different types of securities.
1 CHAPTER IX INTERNATIONAL FINANCIAL MARKETS The International Financial System INTERNATIONAL BUSINESS.
STOCK MARKET. INVESTMENT Definition- act of redirecting resources from being consumed today so they may create benefits in the future.
Chapter 11SectionMain Menu Do Now: There are 4 Exchange Student Guides at each table. Take one and begin reading the first two pages. –DO NOT WRITE ON.
Economics Chapter 9. Section 1 Objectives 1.What benefits do people gain by saving money? 2.How do savings accounts differ from time deposits? 3.How.
A statement will be read. As a group, decide whether you believe the statement to be true or false. Hold up the card to indicate your answer when prompted.
The Stock Market 1.Understand the risks 2.Describe how stocks are traded 3.Identify how stock performance is measured 4.Explain the causes and effects.
INTRODUCTION TO DERIVATIVES Introduction Definition of Derivative Types of Derivatives Derivatives Markets Uses of Derivatives Advantages and Disadvantages.
Copyright© JSE Limited Rod Gravelet-Blondin Commodity Derivatives JSE Limited Learning from South Africa 1 ECX-UNDP Knowledge Forum.
Explain the function of capital markets in a market economy Identify how diversification can reduce risk in an investment portfolio.
NIS Economics Financial Markets (non-bank Financial Institutes and assets)
BUS 353 Part I: Understanding Capital Markets. A. Capital 1.Capital is defined as wealth, generally money or property 2.Capital Providers – people and.
© 2017 SlidePlayer.com Inc. All rights reserved.