🚨 Investing in Stocks For Beginners 🚨
This thread is for absolute beginners who want to invest using the Jamaica Stock Exchange - @jastockex
It's an overview of the process, what is needed and where to look for information.
🧵
This thread is for absolute beginners who want to invest using the Jamaica Stock Exchange - @jastockex
It's an overview of the process, what is needed and where to look for information.
🧵
What is a Stock?
A stock represents fractional ownership of a publicly listed company. A company will issue a stock to raise Capital to fund its operations, purchase equipment or any other objective.
The first time a company lists is called an Initial Public Offering - IPO
1/
A stock represents fractional ownership of a publicly listed company. A company will issue a stock to raise Capital to fund its operations, purchase equipment or any other objective.
The first time a company lists is called an Initial Public Offering - IPO
1/
How do you make money from the Stock Market?
Two main ways:
1⃣ Capital Appreciation - you purchase stocks and resell at a profit.
2⃣ Dividends - some companies pay out dividends from their profits. This varies per company and isn't guaranteed.
2/
Two main ways:
1⃣ Capital Appreciation - you purchase stocks and resell at a profit.
2⃣ Dividends - some companies pay out dividends from their profits. This varies per company and isn't guaranteed.
2/
How Do I Purchase Stocks?
In Jamaica, you can purchase through the Jamaica Stock Exchange (@jastockex) using a Brokerage account to facilitate the transaction.
3/
In Jamaica, you can purchase through the Jamaica Stock Exchange (@jastockex) using a Brokerage account to facilitate the transaction.
3/
Requirements for a Brokerage Account:
- TRN
- ID
- Proof of Address
- Source of Funds
- References
- Initial Deposit (varies per broker)
You can open some accounts with as low as $5,000. Brokers are listed here: jamstockex.com/investor-centr…
4/
- TRN
- ID
- Proof of Address
- Source of Funds
- References
- Initial Deposit (varies per broker)
You can open some accounts with as low as $5,000. Brokers are listed here: jamstockex.com/investor-centr…
4/
Three ways to Invest in Stocks
1⃣Unit Trust/Equity Funds - most Brokerages offer funds that include a variety of stocks.
2⃣ Pension Plan - some pension plans allow for exposure to the Stock Market.
3⃣Owning stocks directly - this option requires most effort
5/
1⃣Unit Trust/Equity Funds - most Brokerages offer funds that include a variety of stocks.
2⃣ Pension Plan - some pension plans allow for exposure to the Stock Market.
3⃣Owning stocks directly - this option requires most effort
5/
How to Know Which Stocks to BUY?
1⃣It starts with Research. Start with companies and industries you understand. More on this on another thread.
2⃣Know the companies Financial Position - through Financial Statements: Balance Sheet, Income Statement & Cash Flow Statements
6/
1⃣It starts with Research. Start with companies and industries you understand. More on this on another thread.
2⃣Know the companies Financial Position - through Financial Statements: Balance Sheet, Income Statement & Cash Flow Statements
6/
3⃣Understand the value of the company - use Financial Ratios to determine the value.
4⃣Understand the sentiment of the company
5⃣Project future Earning potential for the company.
These will be explained further in another thread.
7/
4⃣Understand the sentiment of the company
5⃣Project future Earning potential for the company.
These will be explained further in another thread.
7/
Finally,
Invest in your Financial Education by following us and subscribing to our YouTube channel. We publish content on Financial Education daily/weekly.
youtube.com/c/LearnGrowInv…
Invest in your Financial Education by following us and subscribing to our YouTube channel. We publish content on Financial Education daily/weekly.
youtube.com/c/LearnGrowInv…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
