The thought of you wanting to buy shares in Kenya could have hit your head hard. It’s as simple as ABC because, through this article here, you will find the step to step process on how to carry out the entire process.
The Basic Definition Of Shares
A share represents a unit of equity ownership in a company. Most people prefer investing in shares since it is the most popular way of generating long-term wealth and even fulfilling your financial goals. Shareholders are normally entitled to any profits that the company may earn in the form of dividends. Not only that but they also bear any losses that the company may face.
In simple terms, if one is a shareholder in a company, they are entitled to a certain percentage of ownership of the issuing company in proportion to the shares that they have bought. Being an investor, it is very crucial that you understand the basics of what the share market comprises and how it works. The stock market has for so long continued to shun out millionaires and you are also capable of becoming one because you have the exclusive opportunity to join this exclusive club.
You have the capability of becoming a star stock exchange investor in your own right, as long as keenly master the market. It’s very important that you learn how to buy your shares in Kenya since you will come across plenty of profitable cashing-out opportunities along the way.
-First, begin with opening a CDS account since it is free from any stockbroker or investment bank.
-Decide and then choose the stock to buy.
-Choose the number of shares to buy.
-Then the final stage will involve completing the trade.
Detailed Guidelines on How To Buy Shares
What’s a CDS account?
It’s simply a virtual account where all your shares will be stored. It has some similarities to a bank account. In the past, one would get a certificate when they buy stock in Kenya but this no longer exists. Instead of this, the CDS account acts as evidence that you own stock in a particular company. Opening a CDS account is the easiest process that takes less than a minute.
How Do You Open A CDS Account In Kenya?
Begin by investing in a bank like Stanbic bank, a stockbroker in Kenya, or a bank like Equity bank that is a well-known agent of various stock brokers in Kenya. Equity bank is licensed by the CMA. (capital markets authority). Its an absolutely free process the only requirements include:
-Your original ID card and a copy of it
-Your original KRA pin and a copy
-2 recent colored passport size photos
There are some companies that are also requested to produce additional documents including the company’s KRA PIN and a certificate of incorporation.
How To Identify the best shares to Buy in Kenya
You need a very sober mind to make this decision and never dwell on emotions to guide you through this process.
First, carry out effective research on the prospective company’s general health. Look at the company’s annual report as this will assist you and give you an overview of the company’s future prospects. This will enable you to buy shares of a company that is stable and even growing.
Then carry out a further evaluation of the business. Search for useful information in the newspapers, TV, internet, and everywhere else. Also, search for the latest Nairobi stock exchange performance data of the share from the NSE online platform. This is for you to ensure that the company’s share has great potential going forward.
Other than this, you can also consult an experienced investor or broker for advice on the best company to buy shares in Kenya.
How To Buy Shares In Kenya
To buy the shares, you don’t need to begin with thousands of shillings at once. Most tremendous and well-known investors started small and grew gradually. This is the most strategic way to imply. The least number of stocks you can purchase is 100 so you require adequate funds depending on the share you want to mark your entry with. So with all this, the initial step is to visit your broker and make a written request that you intend to purchase the share you want. It is advisable that you don’t type anything since if the broker has an online trading platform you will just order online. Then deposit cash if required to do and that is if you hadn’t done that. After that the shares, you have purchased will be reflected in your CDS account after a day or even two.
This is a very brilliant decision to make a great milestone in life and because of this, you deserve a sincere hearty congratulations…