How to Buy Shares in Ghana
Shares are units of equity that exist as a financial asset where shareholders are entitled to any profit that a company may earn in dividends. A dividend is a portion of a company’s profit. There are two types of shares. Equity shares and preference shares. Equity shares are shares that businesses issues to raise capital or funds for the business. The owner of shares owns the business as they can vote and manage the company and preference shares are a combination of both debt and equity because they pay like how you pay interest on a debt.
You can buy shares in Ghana when a company floats them or through the Ghana Stock Exchange. It is an easy process, and we will take you through the step-by-step process. Please continue reading;
1. Pick a trusted dealer
Before you buy shares from the Ghana Stock Exchange, you will need to pick a dealer who is a licensed intermediary authorized to trade financial assets. You can find some licensed dealing members on www.gse.com.gh
2. Open an Account
You need to open a trade account with the dealer. You must be 18 years of age and a resident of Ghana. He will provide you with access to their investment platforms, allowing you to send purchase and sale orders to the Ghana Stock Exchange central system.
3. Submit an order
Submit a share purchase order and set a limit price or a market price of the selected asset, which in this case is the share you want to buy.
4. The dealer makes the transaction
The bidding price of the asset must match the asking price, and the dealer makes transaction payments at the Ghana Stock Exchange and delivers the transaction amount to the buyer. The buyer then becomes the legal owner of the asset, which is the share.
5. Pay the dealer
The last thing to do is pay the dealer who will issue the transaction notification. You are now a shareholder.
Buying shares is a form of investment, one of the lucrative kinds. You will make not only make good money in the long term, but you literally own a part of the company and will be included in decision making. You will get detailed insight into the company’s finances and be up to date on everything going on.
You will also make enough money to make other investments. It will also help to prevent impulse spending. It is a great way to increase your wealth. Investment also allows you to ensure present and future financial security.
While it allows you to grow your wealth, it also generates inflation-beating returns.
Investment also has its disadvantages, you can make petty losses or lose all your money at once, but its pros outweigh the cons. You should invest your money in a business, assets, or even land.
Find a dealer today by visiting the Ghana Stock Exchange official website and watch out for companies that float their shares.