Stockbrokers Botswana began its operation in June 1989 and conducted the informal Botswana Share Market until the formal introduction of the Botswana Stock Exchange (BSE) in 1994. Stockbrokers Botswana is a member of the BSE in good standing and is governed by the rules and regulations of the Exchange.
Since inception in 1989, Stockbrokers Botswana has established itself as the top broker of choice, enabling local and international investors to Botswana's Capital Markets. Whether you are a beginner or an experienced investor, we will provide you with vast experience and knowledge in a wide range of financial services, helping you grow your wealth as you "Invest Now, Own Your Tomorrow"
Many people do not consider an investment in shares as an option for their medium or long-term investment plans. However, shares have proven to be a very sound and dependable asset to hold over the long term. This is an overview of what shares are and how individuals can benefit from investing in the stock exchange through us.
What is a share?
In plain and simple words, a share is a Participation in the Ownership of a company. Shares are also known as stocks or equity. Owning a share means you legally own a portion of that company and thus have certain rights. It also represents a claim on the company's earning to the extent of once shareholding.
As a shareholder, you are also entitled to dividends if and when declared by the company; elect directors of the company; and vote on certain transactions that the company wishes to undertake. You also take a proportional share of the company's net assets on liquidation.
You buy a share in the hope of realizing returns in the form of dividends and increased price of the share.
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 of shares "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. This is called “price discovery” and ensures that both buyer and seller achieve the best possible price prevailing at the time of the trade. It is worth noting though that only authorized dealers are allowed on the trading floor of the Exchange.
Companies become publicly owned when they offer a percentage of their shares for sale to the public. It is only at this initial issuance of shares that one can directly buy from the company concerned. To assist potential investors in deciding whether to buy shares or not in an initial issue, detailed information about companies going public is made available in a document known as a prospectus. The prospectus will give the public information on the relevant company, its activities, financial performance both historic and future, and other information required by the BSE regulations sufficient to fully disclose to a potential buyer all the information they require to make an informed investment decision.
Botswana Stock Exchange vs The Broker (SBB)
- BSE is the regulator
- BSE where companies issue shares to raise capital
- Mandated to oversee the secondary and primary markets in Botswana
- BSE has the responsibility of both development and regulation of the market. It regularly comes out with comprehensive regulatory measures aimed at ensuring that end investors benefit from safe and transparent dealings in securities.
- Its basic objectives are:
*Protecting the interests of investors in stocks
*Promoting the development of the stock market
*Regulating the stock market