Neither a speculator who takes on high risks for high rewards nor a - - PowerPoint PPT Presentation

Investor Neither a speculator who takes on high risks for high rewards nor a gambler who takes

• n the risk of total loss for out of

proportion rewards but one whose primary

• bjectives are:

 The preserva

rvation tion of the orig igin inal l in investmen tment

 A steady

y in income

 Capit

ital al apprecia ciation ion

Investme estment nt An asset or item that is purchased with the hope that it will generate income or appreciate ( grow in value) in the future

The Ja Jamaic ica St Stock Ex Exchang nge Provides the market for investor to meet investment.

Years (%) 2009 2010 2011 2012

Annual Inflation Rate 10.2 11.7 6 Fiscal Year Inflation 12.43 13.33 7.84 Return of JSE 3.95 2.28 11.82 Return on Junior 153 97 Average Savings Rate 5.35 2.47 2.13 Range of Average Savings1-10 0.1-8.5 0.1-8.5

The MARKET acts as the conduit to:

• Attract primary capital by rechanneling cash

resources into „productive‟ economic activities thus build up the economy.

• Enhance job opportunities and wealt

lth h cr creatio ion. n.

• Provide the option of equity financing rather

than debt financing.

• Provid

ide e new product ct offerings ings to in invest stors

• rs
• Safety, Opportunities, Choice, Access

(SOCA)

• The Market:

: Provides investors with a market 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 user

• The mandate of the JSE is to provide a fair

and efficient and transparent stock market.

• Provide the facilities to enable companies to

list and raise capital for financing of new & existing business.

• Provide an efficient electronic platform

which facilitates Secondary Market Activities- Trading of the securities.

The Electronic system is structured and provides :

• Continuous order-driven process with

central market principles.

• Trading platform which is tightly coupled

to a settlement platform.

The Exchange‟s Regulatory Requirements

enables a high level of transparency for investors which promotes:

• Increased confidence in the equities

market resulting in greater interest in the market.

• Member dealers and listed companies are

regulated.

• The stock market provides for investors in

the medium and long-term a means to invest in corporate companies in Jamaica.

• Capital appreciation of holdings over a

period of time often exceeds the rate of inflation.

• Consistently the Exchange conducts public
• utreach such as this to advise person on

new developments in the market and to get feed back from investors on their concerns.

• Main, Junior, US Denominated Securities,

• Host workshops on different aspect of

investor education.

• Provide a Website which is updated daily.

www.jamstockex.com

• Provide Quarterly and Annual Stock

Market Performance Reviews.

• Securities must be lodged in the JCSD prior

to the transactions in shares (buy/sell)

• Through the tightly coupled system

(horizon/equity) platforms shares are transferred from one participant to another by a double entry system of accounting

• Brokers must settle transactions on a T+3
• basis. There has never been a failed

settlement.

JSE provides:

• A mechanism for the disclosure of

information to the public.

• A channel for aggrieved clients to lodge

complaints against broker members

• Protection for minority share holders
• Compensation Fund which allows for

compensation of aggrieved investors in respect of brokers conduct.

• Provides a safe and easy process for the

transfer of securities

• Monitors and liaise with listed companies

and registrar to ensure „5-days‟ turn around of securities.

• Provides statements to clients in order that

customer can monitor their transactions and the value of their investment.

• Promote growth of the market
• Promote and Understanding of the Market and

Provide Market Information

• Provide Access to the Market for clients wanting to

invest and Companies wishing to list

• Listed Companies shares are traded through

Authorized brokers

• Investors buy/sell shares listed on the Exchange

through Member dealers who open segregated accounts on behalf of their clients.

• Member Dealers opens with client a

discussion on proposed investment

• Member Dealers examines the fundamental
• f shares such as P.E. Ratio, quality of

Companies and provide advice

Discussions with Government and Other Regulatory Authorities is a key function of the JSE which has resulted in:

• Removal of Taxation on Dividends
• The Establishment of the Junior Market
• The approval of Caribbean Stock Exchange

network

The Jamaica Stock Exchange provides:

• Regulation of members & listed companies

through Rules & Directives

• Electronic Trading- ensuring transparency

& Efficiency

• Electronic Settlement System
• Dissemination of price sensitive information
• Surveillance system – monitoring of the

market

• The platform for you to invest in listed

companies and stay ahead of inflation, preserve your original investment, provide you with a steady source of income and capital appreciation

The general public can receive information on the market through the following channels:

• Radio & Television
• Financial Magazines
• Stock Brokers
• JSE Website
• Stock Market Brochures
• Companies Publications
• Annual Reports
• Daily Trade Sheets

 George Elliott, famous writer, said: “The

strongest principle of growth lies in the human choice”

 Anonymous: “Life is change. Growth is optional.

Choose wisely.”