Buying shares in South Africa has become easier than you can imagine. Unlike in the past where people had to rely on stock brokers who had to be at the exchange, technology has made it easier to identify shares suitable for anyone’s share investment needs. There is a number of things one has to understand before making a decision to invest in shares market.
What are shares?
When companies want to raise money to use as capital for the business, they can do this in many ways. One of these options is to issue shares. This options of shares issuing allows the public to buy shares and own a portion in that business. The amount of shares issued and the operations that the company will embark on determine what we call ‘share price’.
Owning a share in a company means that you own a portion of that business depending on the number of shares you purchased.
What moves a share price?
Share price moves up and down all the time. There are many factors that contribute to the fluctuation of a share price. The main reason for the movement is the force of supply and demand. If more people want to own a share in that company, the share price will go up simply because the share is attractive. The share price will drop if the opposite occurs.
Buying shares in South Africa
Share are traded via the Johannesburg Stock Exchange also known as the JSE. All shares brokers and traders have a link with the Jse. You can buy shares on your own using a platform designed to to so. This process of buying shares is called shares trading. Shares trading platforms are also available in South Africa for those who prefer doing it themselves instead of going via a stock broker.