What is the Johannesburg Stock Exchange (JSE)?
JSE Limited is a proudly South African institution that provides a market place where shares of listed companies can be traded by means of innovative, world class systems and services. It is the engine room of the South African economy and a platform for companies requiring capital to expand their businesses and to meet investors in search of opportunities to grow their investments. JSE efficiently and securely passes on capital raised in the market to users, protecting investors through regulations governing stock broking firms and listed companies. JSE also provides a platform on which previously issued shares are traded i.e. if a shareholder of a listed company wishes to sell his/her shares and wants another person to purchase these shares. JSE not only channels funds into the economy, but it also provides investors with returns on investments in the form of dividends. The exchange successfully fulfills its main function—the raising of primary capital—by rechanneling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.
Did you know? The JSE is the largest stock exchange in Africa and ranks in top 20 largest stock exchanges worldwide.
Basic Investment Concepts
- A share is a fraction of business that makes you a shareholder in that entity.
- Share investing is buying a fraction of a listed company through an intermediary of an organised exchange.
- Exchange Traded Fund is an index that is listed and traded on the stock market.
- A stock exchange is a place where shares are bought and sold.
- A dividend is the sum of money paid by a company to its shareholders out of its profits (Is the distribution from the net profits of a company to its shareholders). The dividends are taxed at 15% since 1 April 2012.
- Volatility is the movement of the share price in the stock market. High volatility is associated with risk, both fundamental and technical.
- Market capitalisation is the total value of the company. It is the total number of shares multiplied by the price of a share.
- Bid price is the highest price that any buyer is willing to pay for a share/security at any given time.
- Offer/asking price is the lowest price at which the seller is willing to accept for a share. The opposite would be a bid.