| Q: |
Is the Jamaica Stock Exchange a Government entity? |
| A: |
No the Jamaica Stock Exchange is a privately owned, limited liability
company. The Bank of Jamaica, that is, Jamaica's central bank, was very
active in the formation of the Stock Exchange and has taken part in all
the pre-incorporation discussions and negotiations. However, over the years,
the role of the BOJ has deliberately decreased.Q How and when did the Jamaica
Stock Exchange begin? |
| A: |
Before the JSE began, Jamaicans could buy and sell shares of corporations
and companies through banks, lawyers and other individuals. The Kingston
Stock Market was established in 1961 to co-ordinate the activities of traders,
or persons who bought and sold shares on behalf of individuals. The JSE
began operations in 1969 and the first official trade took place on Monday,
February 3, 1969. |
| Q: |
Do all Jamaican companies have shares traded on the JSE? |
| A: |
No. On any exchange, only stocks in those companies that are listed are
traded. That means a company must apply to the JSE and be approved to have
its shares traded. |
| Q: |
Where is the Jamaica Stock Exchange located? |
| A: |
The Jamaica Stock Exchange is located at 40 Harbour Street, Kingston.
There is a public gallery from which trading can be viewed during the hours
of trading. The JSE also offers a tour and talk about its operations to
schools and other groups. |
| Q: |
When does trading take place on the JSE? |
| A: |
Trading on the JSE is conducted on Mondays to Fridays between 9:30 a.m.
and 1:30 p.m. |
| Q: |
How do I buy or sell shares on the Jamaica Stock Exchange? |
| A: |
Contact on the stockbrokers licensed by the Jamaica Stock Exchange and
advise him/her to buy shares on your behalf. Give him/her clear instructions
whether orally or in writing.
The process of buying/selling begins when you place the order with your
stockbrokers for a specified number of shares in a company. |
| Q: |
How do I pay for the shares that I have bought? |
| A: |
You will receive a contract note that states the company whose stocks
you have bought or sold, the price paid or received, the commission and
other fees and the settlement date. You should pay your fee on the settlement
date, that is normally five days after the transaction is completed |
| Q: |
Why do I need a stockbroker? |
| A: |
It suits an investor to work through a broker who can also give advice
about the specific securities of interest. Also it is more costly for an
investor to buy shares on your own as shares not traded on the JSE attract
stamp duty and transfer tax. These charges are considerably higher that
the customary brokerage fees. |
| Q: |
How am I protected if my broker's business goes into bankruptcy? |
| A: |
You are protected under civil law and the Compensation Fund administered
by the JSE, specifically for that purpose. However, the Council of the JSE
monitors the financial situation of all brokers. When the JSE sees fit,
it can act on an a priori basis to prevent a broker from continuing to trade
before a situation becomes critical. |
| Q: |
How do I start to buy shares? |
| A: |
Before you can buy or sell shares you must open an account. You might
want to arrange a personal meeting with your broker at his firm's offices?
(Reprinted from the Jamaica Stock Exchange Website: www.jamstockex.com) |
