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| What is a share? |
Shares represent ownership of the company invested in. At its most basic, owning a share means that you legally own a portion of that company and thus have certain rights e.g. you are entitled to dividends if and when declared by the company.
Shares are also known as stocks or equity. |
| sbadmin |
| What is the Stock Exchange? |
| A stock exchange is a forum for buyers and sellers of listed shares to come together, discover the price at which each is willing to trade, and ensure that the trade is executed efficiently. Sellers "offer" their shares at a price and buyers "bid" for those shares at a price. Where the price is one at which a seller will sell and a buyer will buy, the shares change hands and the price and volume is recorded by the stock exchange. |
| sbadmin |
| What are the advantages and disadvantages of investing in shares? |
| Capital gains made on the sale of shares are tax exempt and, generally speaking, dividends are paid on shares twice per annum. In addition, certain banks regard shares as a form of security. The main disadvantage of investing in shares is the risk that the share price may drop. |
| sbadmin |
| What does it cost to buy shares? |
In addition to the cost of the shares, the associated dealing costs are made up of broker commissions and handling fees. Brokerage is charged at 2% of the value of the purchase up to a value of P 50,000.00, 1.5% for purchases between P 50,000.00 and P 100,00.00 and at 1% for anything over P 100,000.00. Handling fees are P 15.00 per purchase and P 10.00 per sale.
Botswana residents are levied 10% VAT on the commissions and handling fees. |
| sbadmin |
(i) For non resident small scale foreign investors what is the
minimum Pula to invest ?
(ii) For the first time do we need to travel to Gaborone to
invest? |
(i) There is no minimum amount to invest save for the restriction that shares cannot trade in a lot size less than 100 shares. Accordingly if a share price is one 100 thebe (1 Pula) the minimum investment would be 100 Pula plus costs. However if you wanted to invest in a share that is priced at 1600 thebe (16 Pula) then the initial investment would be P1,600 plus charges. You should bear in mind that the smaller the number of shares, the higher the costs will be as a proportion of your total purchase price and that when sending foreign currency into Botswana you will incur bank charges. Accordingly a reasonable minimum amount for a foreign investor to start with would be as little as US$200.
(ii) You need not travel to Botswana to invest you can communicate with us by telephone, fax or e-mail. We are regulated by the Botswana Stock Exchange and accordingly you can take comfort from the fact that we are established and reputable. |
| joyuko |
| what are the charges for selling my shares? |
In addition to the cost of the shares, the associated dealing costs are made up of broker commissions and handling fees. Brokerage is charged at 2% of the value of the purchase or sale up to a value of P 50,000.00, 1.5% for purchases between P 50,000.00 and P 100,00.00 and at 1% for anything over P 100,000.00. Handling fees are P 15.00 per purchase and P 10.00 per sale.
Botswana residents are levied 10% VAT on the commissions and handling fees. |
| IanM |
For non Resident foreign small scale investors,
(i) do you receive dividends and credit to their broking
account on their behalf ?
(ii) Is wire (telegraphic) transfer (in US$) an acceptable way
of funding the broking account and will sales proceeds be
be transfered back to your clients in US$ ?
From Mr Nseutit Uko (Nigeria, West Africa) |
i) We can receive dividends and credit your broking account on your behalf.
ii) Wire tranfers in US$ are an acceptable method of funding the broking account and sales proceeds can be tranfered to the client in US$, if desired. Deposit the funds for purchase to our bank account as follows, quoting your name as the reference to enable us to track payment:
Bank: Barclays House Botswana Limited
Branch: Barclays House Branch
Account no.: 3718685
Account name: Stockbrokers Botswana Limited
Sort Code: 29-02-67
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| nseeuko |
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