JSE Equity Market
How do I invest?
www.jse.co.za
Copyright© JSE Limited 2009
1
Where does trading take place?
From Open Outcry …..1887
To Electronic Trading…1996
www.jse.co.za
2
How do I invest?
A South African investor picks up
his copy of the paper or financial
magazine
Buyer
www.jse.co.za
3
How do I invest?
The investor does research on the
economic environment and how well
companies are performing
So many
companies.
Where do I
start?
Buyer
I’ll look at the
companies’
profits and how
well their share
prices have
grown.
I can always
ask my
stockbroker
for advice
www.jse.co.za
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How do I invest?
He’s interested in purchasing some
shares, so he decides to place a
BUY order for shares with his
stockbroker.
Hmm…Sasol
shares look
like a good
investment
Stockbroker
Buyer
www.jse.co.za
5
How do I invest?
His broker then sends that order
electronically into the JSE market
I can also
give my client
advice…
Stockbroker
www.jse.co.za
6
How do I invest?
The JSE then sends this order, via a
communications lines, up to London
I must get the
best price for
my client
Stockbroker
www.jse.co.za
7
At the same time…
A South African investor, wants to sell
her shares
My
investment
has done
well…I think
I’ll sell
Seller
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8
At the same time…
She places a SELL order for her
shares with her stockbroker
I can also
give my client
advice…
Stockbroker
Seller
www.jse.co.za
9
How do I invest?
Her broker then sends that order
electronically into the JSE market
I must get the
best price for
my client
Stockbroker
www.jse.co.za
10
A Trade
The BUY and SELL orders
MATCH and a TRADE happens
I SOLD
my
shares!
Seller
I BOUGHT
my
shares!
Buyer
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The Result
Stockbroker
And…we
were both
paid for our
services!
I got my
MONEY!
Seller
I got my
SHARES!
Stockbroker
Buyer
www.jse.co.za
12
So what happens?
The Share…and many others
Through
Buyer
a
Seller
stockbroker
At the best agreed price
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