What is A Stock?
A stock represents part ownership of a company. A company is
collectively owned by its stockholders. Therefore, if you own
1000 shares in a company that has a capital base of 1,000,000
shares issued and fully paid, then you own one thousandth (1/1000)
of the entire company. If you owned 500,000 shares then half
of the company belongs to you.
How Do I Buy Stocks?
Once you determine which company or companies you would like
to have a part ownership in, you simply get in touch with your
stockbroker (like CMMB Securities and Asset Management) to place your order. If you
are not certain, please come in and our stockbroker will help
you decide which companies stocks may better suit your investment
objectives.
You will need to provide the stockbroker with certain information
(your name, mailing address, ID#, telephone contact etc.) because
an account has to be opened for you before any business can
be transacted on your behalf. After the account is opened, you
can begin to place your orders.
return to top
Types of Orders
There are two (2) types of orders you can place:
- A Market Order, which means you want your stockbroker
to buy or sell the shares at the best possible price
- A Limit Order, which restricts your stockbroker to purchasing
or selling the shares for you up to a certain price determined
by you.
return to top
How Do I Sell Stocks?
You can sell stocks by opening an account with your stockbroker
and placing any one of the two (2) types of orders. When selling,
you must also surrender your stock certificates along with a
signed stock transfer form in order to facilitate the smooth
transfer of the shares to the purchaser.
return to top
What Stocks Can I Buy or Sell?
The stocks of all the companies listed on the Stock Exchange
can be bought and/or sold. To date there are 34 companies
listed on the Stock Exchange.
return to top
What Is A Stock Exchange?
A Stock Exchange is a centralized market place for the
buying and selling of shares. The stockbrokers who buy and
sell on your behalf are called members of the Stock
Exchange. They are the only ones authorized to transact
business on the Stock Exchange. Trading on the Trinidad and
Tobago Stock Exchange takes place on a daily basis, from
9:30am to 12 noon.
return to top
How Are Transactions Settled?
When you place a purchase order for shares on the TTSE, you
must have the required funds in your CMMB Money Market
Account before the trade is executed. If the stock prices
move after a "market" order is placed, outstanding balances
must be deposited into your CMMB account before 11:00am on
settlement day. Transactions on the TTSE, BSE and JSE are
settled 3 working days after execution.
return to top
How Are Prices Determined?
The price of a stock depends on a number of factors including
demand/supply conditions in the market for that particular stock.
Heavy demand will more than likely push the price upward. On
the other hand, if there are many sellers of a particular stock
then the likelihood is that the stock price will decline. Supply/demand
conditions can change suddenly. A companys results may be exceptionally
good or bad. Or there may be some bit of news, which may bode
well for a particular company that generates new demand for
its stock. That is why stock markets are sometimes volatile
and that is why any investor or prospective investor has to
determine what level of risk he or she is prepared to assume
because every investment carries an attendant risk.
return to top
|
