How To Invest
The following steps will guide a potential investor on how to invest on the Malawi Stock Exchange
STEP ONE - FIND/CHOOSE A BROKER
A stockbroker is the investors link with the Stock Exchange. A stockbroker is a licensed firm which buys and sells shares and securities on behalf of investors for a brokerage fee or commission.
Stockbroking is a personal service, so before you begin, talk to the brokers to find out what services they offer. Your choice of broker will depend on what type of service you require.
STEP TWO - MAKING THE INVESTMENT DECISION
A potential investor should decide whether he is interested in regular income or long-term capital appreciation. This decision will assist your broker in recommending whether your decision to invest on the Stock Market is suitable for your need.
Remember the actual day-to-day behavior of share prices is governed by the law of supply and demand. Every buyer has his own reason for preferring one security over another.
STEP THREE - BUYING AND SELLING SECURITIES (PLACING AN ORDER)
After you have decided which securities to buy, guided by your stockbroker, decide the price you are ready to pay for each security and the number of securities your money can buy.
STEP FOUR - SAVING ON THE STOCK EXCHANGE AND ACCUMULATION
Make investing on the Stock Exchange a regular habit by allocating small amounts of funds to buy Securities. This is one way of saving and accumulating wealth for your future or that of your children and dependants.
STEP FIVE - MONITORING YOUR INVESTMENT
Watch your investment grow and keep up to date by reading the Malawi Stock Exchange news in the Newspaper, our website, by subscribing to our mailing list and by regular contact with your broker.
ACT NOW! CONTACT A BROKER!