Investment is a very familiar word but the activity of investing is not known by everyone. Some even confuse investing with saving. Like keeping your money at the bank or buying a television, investing in stocks on the Stock Exchange Market is not as complex as it seems.
It is always helpful to read and understand investing, whether you are investing on your own or you have a dealer. After, you can decide the amount of money you are willing and ready to invest, provided all your basic needs are met.
Unlike cryptocurrencies that are extremely volatile, stocks are better in that regard. Though profits are not always certain especially in the short term, you can sometimes make a gain for the long term. Okay, so with this basic understanding, here is how to buy and sell stocks on the Ghana Stock Exchange.
Find a Dealer
Sorry but to trade on any stock exchange is not the same as walking to the groceries shop and making purchases by yourself. Here, you need to choose a dealer to do that shopping for you. Dealers are licensed and authorized financial intermediaries who trade financial assets on the stock exchange.
They are experts who can make your money work for you. However, it is always important to research on them and decide on a dealer that has the expertise and experience that suits you. The Ghana Stock Exchange has published the recognized and authorized licensed brokers in Ghana.
Open a Trading Account with the Dealer
Just like choosing a bank and opening account, same applies to a stock exchange dealer. Opening an account with a dealer allow access to their investment, where you can send purchases and make sale orders to the stock exchange central system.
The legal requirement is that, you must be 18 years old and above, and have a residence in Ghana.
Select the Asset You Want to Invest in
The next step is to decide on which asset to invest in. Usually, this decision can be made even before you find a dealer. On the stock exchange market, you can choose invest in stocks or bonds or both. If you are not sure which on to invest in, you can talk to your dealer for his/her recommendation.
Send a Buy Order
At this point, you will have to submit purchase to your dealer for the asset you have chosen to invest in.
Wait for the transaction to be completed
A trade transaction is said to be completed or executed when the bidding price of the asset matches the asking price. It is just like a seller and buyer agreeing on the price of a product.
After, the dealer would use your details to make payment of purchase at the stock exchange market. Now, you become the owner of that asset (share, bond etc.).
Notification and Fees
The dealer will send you notification of the transaction through your email, SMS or other available means. He/she will communicate to you the fees for his/her service. There are no fixed/flat fees charged by all dealers therefore it is important to also consider among other things, the fees when choosing a dealer.