Are Single Stock Futures (SSFs) offered by the JSE or by PSG Online?

Single Stock Future (SSF) are listed and traded on the JSE. PSG Online is the broker that will be doing the trade on the JSE on behalf of the client. PSG is one of about 100 brokers through which market participants can trade on the JSE. All trading on the JSE has to take place through a broker.

Are there binary trading options in SA?

On our Can Do products we do offer digital options (much the same as binary options) but on Shares only.

Are there many legal implications when issuing Bonds?

A company is entitled to issue as much debt as the market will take. There are many listing requirements relating to issuing debt, just as there are for issuing equity.

Are zero coupon bonds available in SA or would they be incorporated into ETFs?

We do have zero coupon government bonds listed. There are four government bond related ETFs but they are not the zero coupon type. Click here for more information about ETFs.

Can someone who is blacklisted have a share trade account?

They can have a share trading account through a broker. It is up to the broker handling the individual’s account to be aware of any misdealing by that individual/client. If an irregularity is picked up by the JSE, then the broker firm will have to answer to that.

Can you buy Satrix Exchange Traded Funds (ETFs) directly?

You can buy Satrix ETFs through a stockbroker or directly from Satrix, using its investment plan.

Can you buy shares directly with the JSE or do you need a broker?

The JSE does not sell shares directly. You have to go through a JSE registered stockbroker.

Can you tell me more about Defence X?

Defence X is not part of the JSE.

Does the JSE offer bursaries for students at universities?

Find out more about JSE bursaries.

Does the JSE employ new graduates?

Click here to find out more about the JSE’s graduate programme, which is known as the “Class of” programme.

Does the JSE manage unit trusts?

The JSE does not manage unit trusts. Asset managers and investment banks such as Allan Gray, Absa, Stanlib, OMIGSA and SIM are some of the registered financial institutions that manage different types of unit trusts, depending on their risk profiles. They have different minimum investment requirements. Visit their websites for more information.

Does the JSE provide its data to small/community media (TV/radio/newspapers)?

Anybody can subscribe to data through a data vendor.

How can I become a shareholder?

You become a shareholder by buying shares in a company. You can do this through a JSE registered stockbroker

How can I get access to information such as currency prices, currency indicators, SENS announcements and information?

Create your own JSE online account.

How do I get started with trading or investing in Shares?

You must go through a JSE registered stockbroker . They will advise you on your best options.

How do I apply for an internship at the JSE?

Internships for 2016 are closed, but you can click here to find out more about JSE careers and the “Class of” programmes.

How do I buy or sell Commodities, such as oil or platinum?

You need to go through a JSE Commodity Derivatives Member.

How do I get 15-minute delayed prices?

The JSE displays 15-minute delayed prices for free, here. Real-time data and information is paid for through our data vendors.

How do I invest in shares or bonds and how much will it cost to start investing?

A JSE registered stockbroker would be the best person to speak to.

How do stockbrokers determine the percentage of brokerage fees?

A stockbroker will be able to answer this question for you.

How does foreign exchange work? What happens when markets close in different countries? Does it ever stop? Or does the market centre on whoever is “awake”?

Foreign exchange “never sleeps” and because the currency markets are large and liquid, they are believed to be the most efficient financial markets. The foreign exchange market is not a single exchange, but a global network of computers connecting participants from all parts of the world.

How does the forex market differ from the stock market? Why can I access the forex market directly and trade on my own, when I have to use the services of a stockbroker to trade on the stock market?

The Currency Futures Market is a platform that the JSE hosts, but the forex and stock markets operate independently. Different rules apply to the two markets. Although you can trade independently on the forex market, you can also do it through your stockbroker. To trade on the stock market, you have to use the services of a stockbroker.

How much do traders or stockbrokers earn?

Brokers have high-performance jobs in a demanding industry. They earn well, and bonuses depend on the accuracy of their advice. To be an analyst, you probably need a university degree with qualifications such as finance or engineering.

I live outside South Africa and would like to start trading on the JSE. Can I?

There are three ways to invest on the JSE from outside SA: through your local stockbroker, through your bank or through a South African stockbroker.

I read an article about xBonds which said the minimum amount of money needed is R1000 paid as a lump sum or a R300 debit monthly. Do I need a broker to buy these bonds?

It is difficult to compare the charges for investing between brokers and banks, and the best way to find out is to ask a few brokers to compare charges. However, if you are a beginner investor, and if you are investing under R1 000 a month, ETFs are a great way to go. What about having a look at a few ETF provider sites to see what you prefer? It is also a great idea to consult a financial advisor; you can find one at your bank, for example. Here are a few places to look for information on ETFs:www.etfsa.co.za.

I want to know how much I will make in two years if I invest R20 000.

It depends on what you invest in and on supply and demand. If you invest a lump sum, the investment fee may be lower, but many people invest in monthly instalments to force themselves to save. Instalments may also be less risky, but you could miss out on capital growth and dividends that would have come from a lump sum. You can pay monthly instalments on certain investment options only, such as ETFs. Ask your broker for advice.

If I am currently not living in South Africa, can I still trade in South African Shares?

Yes, you can. You will need to look for online brokerages in your country with operations in South Africa.

If you open a share trading account on your online banking profile, do you need a broker?

If you are opening an account online through your bank, you don’t need advice from a broker. However, the bank acts as a broker on your behalf so that you may complete the transaction. Banks will charge their clients a fee for opening an account. Regarding advice, you will need to check with your bank, but most banks will specify on their websites if a fee is involved.

Is it best to use fundamental analysis or technical analysis to research a market?

As an individual investor you need to make sure you equip yourself with the best tools to make informed investment decisions. Whether you use fundamental or technical analysis techniques is entirely up to you.

Is it necessary for an investor to learn things like technical analysis techniques and fundamental analysis techniques even when using a broker?

That information is helpful but is not absolutely necessary, particularly when you are using a broker. The important thing is to make sure you have good advice before investing. You can select a general unit trust or listed fund so as to reduce your risk.

Is it possible to buy and sell after a day? How long should I wait to sell what I have bought?

You can sell your Shares right after buying them. You don’t have to hold them for any minimum time. Your broker or financial advisor will be able to give you advice on how long you should hold onto your shares.

Is the London School of Investment one of your brokers?

London School of Investment is not a stockbroker and it is not part of the JSE. If you are looking to locate a stockbroker, you can find one here.

Is the London School of Investment the only way of registering to trade or can I do it on my own?

You don’t need to go through any school or trading organisation. You can trade through your bank or a broker. You only need to pay trading fees and you don’t need any special software or upfront fees for that.

What are Derivatives?

Derivatives can be Futures, Options or Warrants. They are securities whose value is determined by or derived from other underlying assets like Shares.

Indices reflect the aggregate movement of the markets they represent. They summarise the fluctuation of Share prices on a given day. Technically, one can't actually invest in an index.

Indices reflect the aggregate movement of the markets they represent. They summarise the fluctuation of Share prices on a given day. Technically, one can’t actually invest in an index.

What are Single Stock Futures?

Single Stock Futures (SSF) is a Derivative Instrument that gives you exposure to the price movements of an underlying financial instrument (Shares). A Futures Contract is a legally binding agreement that gives you, the investor, the right to buy or sell the underlying listed Share at a fixed price on a future date. This means that trading in SSFs enables you to speculate, hedge and exploit market opportunities.

What are the JSE’s social responsibilities?

Our philosophy on sustainability.

What does it mean when Shares are suspended?

Suspension of Shares means the company is still listed on the JSE but the Shares cannot be traded until further notice. This is because a company has not met one of the listing requirements. The information is made public via a SENS announcement.

What is a bear market?

A bear market is a market in which prices are falling.

What is a BRICS economy?

A BRICS economy is any of the five economies that make up BRICS, an international political organisation of leading emerging economies. The economies concerned are Brazil, Russia, India, China and South Africa. BRICS is an acronym made up of the first letters of each of these economies’ names.

What is a bull market?

A bull market is a market in which prices are rising or are expected to rise.

If you own a Share , you own a portion of a company. Imagine the company as a pie. You own a slice of the pie. You can also call a share equity or stock.

A Spot Bond is a long-term loan. The borrower pays the bondholder interest over a period of time and repays the full loan amount on a predetermined maturity date.

What is Global Trading?

It is an online trading financial service provider. You can find out more by visiting its website at https://www.gt247.com/.

What are the fundamental principles that you have to incorporate into your trading plan to increase your probability of entering high probability trades?

You need to research what you are buying and know the risks involved.

What are trading averages?

Trading averages are the average number of individual Shares or securities traded in a day or over a period of time. Trading activity relates to the liquidity of the security. So, if the trading average is high, the security has high liquidity and can easily be traded (people are willing to buy and sell it).

What is a trust fund?

A trust fund is a fund made up of a variety of assets intended to provide benefits to an individual or organisation. The trust fund is established by a grantor to provide financial security to an individual, most often a child or grandchild, or to organisations, such as a charity or other non-profit organisation.

What is a yield curve?

A yield curve is a line that plots the interest rates, at a set point in time, of bonds of equal credit quality, but differing maturity dates.

What does “soft noon trading” mean?

It means there was less demand and more surplus for Shares traded on the exchange, which led to a decrease in volume and value. Hence the soft trade in the afternoon.

JSE FAQs: Trading, Investing & Operations Explained

Are Single Stock Futures (SSFs) offered by the JSE or by PSG Online?: Single Stock Future (SSF) are listed and traded on the JSE. PSG Online is the broker that will be doing the trade on the JSE on behalf of the client. PSG is one of about 100 brokers through which market participants can trade on the JSE. All trading on the JSE has to take place through a broker.
Are there binary trading options in SA?: On our Can Do products we do offer digital options (much the same as binary options) but on Shares only.
Are there many legal implications when issuing Bonds?: A company is entitled to issue as much debt as the market will take. There are many listing requirements relating to issuing debt, just as there are for issuing equity.
Are zero coupon bonds available in SA or would they be incorporated into ETFs?: We do have zero coupon government bonds listed. There are four government bond related ETFs but they are not the zero coupon type. Click here for more information about ETFs.
Can someone who is blacklisted have a share trade account?: They can have a share trading account through a broker. It is up to the broker handling the individual’s account to be aware of any misdealing by that individual/client. If an irregularity is picked up by the JSE, then the broker firm will have to answer to that.
Can you buy Satrix Exchange Traded Funds (ETFs) directly?: You can buy Satrix ETFs through a stockbroker or directly from Satrix, using its investment plan.
Can you buy shares directly with the JSE or do you need a broker?: The JSE does not sell shares directly. You have to go through a JSE registered stockbroker.
Can you recommend a book that will teach me about the stock exchange?: There are a lot of good books about investing. For the SA-based professional, we’d recommend The Effective Investor by Franco Busetti http://www.kalahari.com/books/The-effective-investor/762/34366747.aspx.
For beginners, we would recommend Shares – A Buyers Guide 2009 by Alec Hogg. You can email [email protected] for an order form.
Can you tell me more about Defence X?: Defence X is not part of the JSE.
Does the JSE offer bursaries for students at universities?: Find out more about JSE bursaries.
Does the JSE employ new graduates?: Click here to find out more about the JSE’s graduate programme, which is known as the “Class of” programme.
Does the JSE manage unit trusts?: The JSE does not manage unit trusts. Asset managers and investment banks such as Allan Gray, Absa, Stanlib, OMIGSA and SIM are some of the registered financial institutions that manage different types of unit trusts, depending on their risk profiles. They have different minimum investment requirements. Visit their websites for more information.
Does the JSE provide its data to small/community media (TV/radio/newspapers)?: Anybody can subscribe to data through a data vendor.
How can I become a shareholder?: You become a shareholder by buying shares in a company. You can do this through a JSE registered stockbroker
How can I get access to information such as currency prices, currency indicators, SENS announcements and information?: Create your own JSE online account.
How do I get started with trading or investing in Shares?: You must go through a JSE registered stockbroker . They will advise you on your best options.
How do I sign up for the Virtual Trader?: Register for Virtual Trading.
How difficult is it to earn a return on my investment of 10% a day through daily trading on the JSE? What are the key indicators to identify the potential of such a return and what market segments should I look at?: Trading is difficult and requires skill and patience. A steady performance of 10% a day is not really possible. To generate returns of 10% you would have to risk a significant amount of your capital each day. You would also use instruments such as Futures, which provide leverage.

Trading is like most things: the more effort you put in and the better you plan, the higher your chances of success.

Let’s have a quick look at the maths. If you started with R10 000, then by making 10% a day and compounding this over the year of about 250 trading days, you would have R222 trillion and change by the end of the year. This would be much bigger than the entire stock market.

If you started with R10 000 and made just 1% on your capital every day, which is much closer to being possible, your R10 000 would be about R120 000 by the end of the year. That is the incredible power of compounding interest which makes stock market investing so appealing. This is a more feasible return but would still make you one of the best-performing traders in history.
How do I apply for an internship at the JSE?: Internships for 2016 are closed, but you can click here to find out more about JSE careers and the “Class of” programmes.
How do I become a stockbroker?: To practise as a broker under a financial institution you need to complete the exam offered by the South African Institute of Financial Markets.http://www.saifm.co.za/
You can also find out more about different categories of stockbroker here.
How do I become a stockbroker?: Useful qualifications could include a commerce degree and a CFA (chartered financial analyst) credential. You need to write the Registered Persons Examinations run by the South African Institute of Financial Markets. These include:

Regulation and Ethics of the SA Financial Market

Introduction to Financial Markets

The Equity Market

The Derivatives Market

Agricultural Products Market Dealers Exam

The Bond Market

The South African Money Market

Regulation and Ethics of the SA Financial Market

The South African Forex Market; and

BESA Rules.

There are also exams for Strate Compliance Officers, JSE Settlement Officers and the JSE Equity Trader (TradElectTM) Exam.
How do I buy or sell Commodities, such as oil or platinum?: You need to go through a JSE Commodity Derivatives Member.
How do I get 15-minute delayed prices?: The JSE displays 15-minute delayed prices for free, here. Real-time data and information is paid for through our data vendors.
How do I invest in shares or bonds and how much will it cost to start investing?: A JSE registered stockbroker would be the best person to speak to.
How do stockbrokers determine the percentage of brokerage fees?: A stockbroker will be able to answer this question for you.
How do you trade ETFs?: Through an investment plan you can invest a minimum of R300 a month or a R1 000 lump sum. Brokers charge different fees so you would need to investigate what those are before you open an account.
You can also invest directly through an ETF provider and not a stockbroker. It’s cheaper but they won’t provide you with an investment plan like a stockbroker will.

You can find out more about ETFs at www.etfsa.co.zaor www.itransact.co.za.

Most ETFs pay dividends, just check with your broker. You can choose to have your dividends paid into your account, or you can reinvest them back into your portfolio. However, some ETFs only offer you a total return option, which means your dividends are paid directly back into your investment.
How does foreign exchange work? What happens when markets close in different countries? Does it ever stop? Or does the market centre on whoever is “awake”?: Foreign exchange “never sleeps” and because the currency markets are large and liquid, they are believed to be the most efficient financial markets. The foreign exchange market is not a single exchange, but a global network of computers connecting participants from all parts of the world.
How does the forex market differ from the stock market? Why can I access the forex market directly and trade on my own, when I have to use the services of a stockbroker to trade on the stock market?: The Currency Futures Market is a platform that the JSE hosts, but the forex and stock markets operate independently. Different rules apply to the two markets. Although you can trade independently on the forex market, you can also do it through your stockbroker. To trade on the stock market, you have to use the services of a stockbroker.
How much do traders or stockbrokers earn?: Brokers have high-performance jobs in a demanding industry. They earn well, and bonuses depend on the accuracy of their advice. To be an analyst, you probably need a university degree with qualifications such as finance or engineering.
I live outside South Africa and would like to start trading on the JSE. Can I?: There are three ways to invest on the JSE from outside SA: through your local stockbroker, through your bank or through a South African stockbroker.
I read an article about xBonds which said the minimum amount of money needed is R1000 paid as a lump sum or a R300 debit monthly. Do I need a broker to buy these bonds?: It is difficult to compare the charges for investing between brokers and banks, and the best way to find out is to ask a few brokers to compare charges. However, if you are a beginner investor, and if you are investing under R1 000 a month, ETFs are a great way to go. What about having a look at a few ETF provider sites to see what you prefer? It is also a great idea to consult a financial advisor; you can find one at your bank, for example. Here are a few places to look for information on ETFs:www.etfsa.co.za.
I want to know how much I will make in two years if I invest R20 000.: It depends on what you invest in and on supply and demand. If you invest a lump sum, the investment fee may be lower, but many people invest in monthly instalments to force themselves to save. Instalments may also be less risky, but you could miss out on capital growth and dividends that would have come from a lump sum. You can pay monthly instalments on certain investment options only, such as ETFs. Ask your broker for advice.
If I am currently not living in South Africa, can I still trade in South African Shares?: Yes, you can. You will need to look for online brokerages in your country with operations in South Africa.
If you open a share trading account on your online banking profile, do you need a broker?: If you are opening an account online through your bank, you don’t need advice from a broker. However, the bank acts as a broker on your behalf so that you may complete the transaction. Banks will charge their clients a fee for opening an account. Regarding advice, you will need to check with your bank, but most banks will specify on their websites if a fee is involved.
Is it best to use fundamental analysis or technical analysis to research a market?: As an individual investor you need to make sure you equip yourself with the best tools to make informed investment decisions. Whether you use fundamental or technical analysis techniques is entirely up to you.
Is it necessary for an investor to learn things like technical analysis techniques and fundamental analysis techniques even when using a broker?: That information is helpful but is not absolutely necessary, particularly when you are using a broker. The important thing is to make sure you have good advice before investing. You can select a general unit trust or listed fund so as to reduce your risk.
Is it necessary to buy share charting or share tracking software or any other software packages to invest on the JSE?: No. You don’t need any software to invest on the JSE. The JSE doesn’t sell any such software, so anyone who suggests you should buy it is not endorsed or authorised by the JSE. Many of the people trying to sell this kind of software say you can use it to invest directly with the JSE. That is incorrect information. The only way you can invest with the JSE is to open an account with a stockbroker. Usually, it is free to set up the account. Normally, you pay an administration fee to the stockbroker every month after you have set up the account.

A stockbroker can manage your money for you. They can also allow you to use their facilities to manage your own money. People see this as a direct method of investing on the JSE, but actually, you are still investing through the broker, even though you are making your own decisions about what and when to buy and sell.

If you would like to see a list of stockbrokers, click here. A JSE Equities member is authorised to perform trading and investment services. Stringent requirements have to be met to qualify as a JSE Equities member.

Investing on the stock market is not a way to get rich quickly, with no effort. It actually takes a lot of time, effort and knowledge to make a profit on the stock market. If you want to manage your own investments, you will need to spend a lot of time on it and study the market hard. A quick training course won’t do that for you.
Is it possible to buy and sell after a day? How long should I wait to sell what I have bought?: You can sell your Shares right after buying them. You don’t have to hold them for any minimum time. Your broker or financial advisor will be able to give you advice on how long you should hold onto your shares.
Is the London School of Investment one of your brokers?: London School of Investment is not a stockbroker and it is not part of the JSE. If you are looking to locate a stockbroker, you can find one here.
Is the London School of Investment the only way of registering to trade or can I do it on my own?: You don’t need to go through any school or trading organisation. You can trade through your bank or a broker. You only need to pay trading fees and you don’t need any special software or upfront fees for that.
What are Derivatives?: Derivatives can be Futures, Options or Warrants. They are securities whose value is determined by or derived from other underlying assets like Shares.
What are indices?: Indices reflect the aggregate movement of the markets they represent. They summarise the fluctuation of Share prices on a given day. Technically, one can't actually invest in an index.
What are indices?: Indices reflect the aggregate movement of the markets they represent. They summarise the fluctuation of Share prices on a given day. Technically, one can’t actually invest in an index.
What are Single Stock Futures?: Single Stock Futures (SSF) is a Derivative Instrument that gives you exposure to the price movements of an underlying financial instrument (Shares). A Futures Contract is a legally binding agreement that gives you, the investor, the right to buy or sell the underlying listed Share at a fixed price on a future date. This means that trading in SSFs enables you to speculate, hedge and exploit market opportunities.
What are the JSE’s social responsibilities?: Our philosophy on sustainability.
What does it mean when Shares are suspended?: Suspension of Shares means the company is still listed on the JSE but the Shares cannot be traded until further notice. This is because a company has not met one of the listing requirements. The information is made public via a SENS announcement.
What is a bear market?: A bear market is a market in which prices are falling.
What is a BRICS economy?: A BRICS economy is any of the five economies that make up BRICS, an international political organisation of leading emerging economies. The economies concerned are Brazil, Russia, India, China and South Africa. BRICS is an acronym made up of the first letters of each of these economies’ names.
What is a bull market?: A bull market is a market in which prices are rising or are expected to rise.
What is a Share?: If you own a Share , you own a portion of a company. Imagine the company as a pie. You own a slice of the pie. You can also call a share equity or stock.
What is a Spot Bond?: A Spot Bond is a long-term loan. The borrower pays the bondholder interest over a period of time and repays the full loan amount on a predetermined maturity date.
What is Global Trading?: It is an online trading financial service provider. You can find out more by visiting its website at https://www.gt247.com/.
What are the fundamental principles that you have to incorporate into your trading plan to increase your probability of entering high probability trades?: You need to research what you are buying and know the risks involved.
What are trading averages?: Trading averages are the average number of individual Shares or securities traded in a day or over a period of time. Trading activity relates to the liquidity of the security. So, if the trading average is high, the security has high liquidity and can easily be traded (people are willing to buy and sell it).
What is a trust fund?: A trust fund is a fund made up of a variety of assets intended to provide benefits to an individual or organisation. The trust fund is established by a grantor to provide financial security to an individual, most often a child or grandchild, or to organisations, such as a charity or other non-profit organisation.
What is a yield curve?: A yield curve is a line that plots the interest rates, at a set point in time, of bonds of equal credit quality, but differing maturity dates.
What does “soft noon trading” mean?: It means there was less demand and more surplus for Shares traded on the exchange, which led to a decrease in volume and value. Hence the soft trade in the afternoon.
What is a closing auction?: The closing auction is the last 15 minutes of the trading day, when buyers put in their bids and sellers enter their offers at the same time. The price a stock is traded at represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to sell at. Matching bids and offers are then paired together and the orders are executed. The last price traded will be the closing price. This will be the most up to date valuation of the stock traded until the market opens the next day.
What is an Exchange Traded Fund (ETF)?: An ETF is a listed investment product that tracks the performance of a basket of shares, bonds or commodities. ETFs can be bought and sold just like Ordinary Shares. The difference is that one ETF gives you exposure to more than one share, so your risk is lower. Some ETFs will pay you dividends, but not all of them.
What is equity?: A stock or any other security that represents an ownership interest. For a simpler explanation, look at What is a Share?
What is forex?: Forex is the abbreviation for foreign exchange (the currencies of countries other than South Africa, in this case). You can trade in forex (international currencies) and forex derivatives through the JSE.
What’s the comparison between broker costs if a person invests in Exchange Traded Funds (ETFs) directly through Satrix or through accounts offered by banks?: There are currently four ways to invest in ETFs:

Open an account with a stockbroker. You will be able to invest in Shares and ETFs this way and you will be able to get advice from your stockbroker. Costs are slightly higher because of this.

Use the investment plan of one of the ETF providers directly. You will only be able to invest in that ETF provider’s products and it will cost you less than going through a stockbroker, but you won’t receive any advice. You will be able to invest a minimum of R300 a month or R1 000 as a lump sum.

Use etfSA, an online platform that allows you to buy and sell ETFs and offers you additional information such as the performance figures of each ETF. You will be able to invest in ETFs, but not individual company Shares, at a cost very similar to that of dealing directly with the ETF provider. etfSA also offers an investment plan through which you can invest a minimum of R300 a month or R1 000 as a lump sum. www.etfsa.co.za

Use itransact, which offers an online platform specifically designed for the financial advisor, whom you can consult for some additional advice: www.itransact.co.za

a.Your financial advisor can invest on your behalf

b.An investment plan is also available through them; and

c.You’re able to invest in ETFs, ETNs and ETF wrap funds, through their accredited financial advisors.
What is the All Share Index?: The All Share Index shows how the value of all the companies on the JSE is changing. The value changes when Share prices go up and down – if the Share prices rise on average, then the index goes up, and vice versa. The index is used as a measure of how well a market is performing. People like to see the index as a graph so they can see visually how the market has moved.
What is the difference between an ETF and an SSF?: An Exchange Traded Fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

A Single Stock Future (SSF) is a Derivative Instrument that gives an investor exposure to the price movements of an underlying financial instrument (Shares). A Futures Contract is a legally binding agreement that gives the investor the right to buy or sell the underlying listed share at a fixed price on a future date.
What is the difference between penny shares and other shares? Why do penny shares get less attention in the media? Is there something wrong with them?: Penny shares cost less per share than other shares and generally penny share companies are smaller than the big companies you hear more about. There is nothing wrong with penny shares, but often people regard them as riskier than bigger stocks, meaning that you could do well but you could also lose money. Ask your stockbroker for advice.
What is the difference between stakeholders and shareholders?: Shareholders are people who own part of the company because they have bought shares in the company. Stakeholders are people who have an interest in the company, but do not own part of the company. Examples of stakeholders would be employees, suppliers, customers, and so on.
What is the minimum amount I can invest on the JSE?: The minimum amount varies depending on the share or asset class you want to buy. For some Exchange Traded Funds (ETFs), the minimum is R300 a month or a one-off amount of R1 000.

With online share trading now widely available, you are able to invest any amount on the stock market via the internet. Click here to find out more about online share trading.

For more information you can go to our online course “Stock Market for Beginners”.
What is the Virtual Trader?: The JSE’s Virtual Trader is a simulated trading platform, which allows you to experience real-time trading, off a 15-minute delayed price feed, on any of the various asset classes which are currently listed on the JSE.
What trading software do you recommend?: The JSE doesn’t recommend any particulartrading software. As a client, you would use the trading software your broker supplies. Some brokers develop their own trading software. Others use software developed by independent companies.
Where can I find charts for different types of markets?: You can find market data here,

All prices are delayed by 15 minutes. If you want real-time data you need to go through one of the JSE’s data distributors. You can find a list here.
Where can I find information on JSE events and workshops?: Free public trading and investing seminars.
Where can I get the JSE magazine?: CNA and Exclusive Books.
Which are the top ten shares to invest in?: We aren’t able to give you advice like this. Please ask a stockbroker, bank or financial planner for advice. Or you may wish to invest in Exchange Traded Funds (ETFs) that hold Top 40 stocks.
Which companies do you recommend I invest in on the JSE?: You can get investment advice from a registered financial advisor, who may be with your bank or a stockbroker. Click here for a list of brokers, or speak to your bank for advice.
If you are starting out, you might like to consider a product like an Exchange Traded Funds (ETFs), which you can buy monthly by debit order.
Why do companies list on the JSE?: Listing enables a company to raise capital (the funds it needs to operate and grow) and thus promotes improvements in a company. Listing generally heightens a company’s public profile with customers, suppliers, the media and investors. As a result, more business opportunities become available to the company. Find out more about listing a company. Find out more about listing a company
Why do markets drop?: When you have more sellers than buyers for a particular company’s shares, Share prices usually fall because there are more of these Shares available. If a company is very profitable, a Share in that company will become more valuable because more people think that it is a good investment. Also consider factors such as economic and political events that influence Share prices. The market will rise and fall in the short term because of various market conditions but over the longer period the market does offer you a favourable return. Share trading normally does not make you rich overnight; it should be treated as a long term investment.
Why do share prices plunge below average every time there is a wage strike or unrest in the country? Shareholders cannot be held responsible for employees’ behaviour.: Generally, the price of a stock is determined by supply and demand. For example, if there are more people wanting to buy a stock than to sell it, the price will be driven up because those Shares are rarer and people will pay a higher price for them. If there are a lot of Shares for sale and no one is interested in buying them, the price will fall quickly. Labour unrest is one of the factors that can affect the demand for companies’ Shares.
Why do the prices of Shares and stocks fluctuate daily?: Generally, the price of a stock is determined by supply and demand. For example, if there are more people wanting to buy a stock than to sell it, the price will be driven up because those Shares are rarer and people will pay a higher price for them. If there are a lot of Shares for sale and no one is interested in buying them, the price will fall quickly.

Aside from the prospect of dividends and long-term capital growth, what are the benefits of being a shareholder of a listed company?: The chief benefit is that you will have a voice and a vote in the running of the company. You will be able to attend meetings and make your feelings known. By speaking out, and asserting your right to be kept informed of developments, you may be able to influence direction and policy.

Your status will shift from consumer and observer to active role-player. You’ll be able to take a direct, personal interest in the company, its products and services, and the industry in which it operates. You’ll share its vision and its goals, along with any dividends that might come your way. No matter how small your shareholding, you’ll be more than an investor.
Can I use my computer to buy and sell shares on the JSE?: Yes. Now that trading has shifted from the floor to the computer network, online dealing is a natural and logical extension to the services offered by a growing number of member firms.

You’ll be able to visit their websites, open a password-protected account, check prices, and buy and sell Shares by email, often at a discounted brokerage fee. You’ll pay for your Shares by bank transfer, or a debit from a holding account set up with the member firms.

While this type of online dealing should not be confused with online trading – for obvious reasons, you will not have access to the JSE’s network – it offers convenient access to stockbroking facilities.
Do you have a way of financially supporting young people who wish to trade on the JSE?: We do not give financial support to individuals in order to trade.
Do you have FTSE/JSE Indices history available?: Yes, we have a History CD available. Also, the JSE provides historical data on request and considers each request on a case by case basis, with the overall charge based on the value of the data, amount of data required and the effort involved in producing the data.
Do you have to be rich to invest on the JSE?: Not at all.There’s nothing to prevent the smaller investor from staking a claim to a share of a public company. Some member firms (stockbrokers) choose to deal only with institutions or larger investors. But you should have no trouble finding a member firm that is prepared to take on a client with as little as R5000 to invest. The formula: start small, invest wisely, stay the distance.
Does the JSE provide learnership or internship programmes?: Unfortunately, we currently are not offering any internships or learnerships.
How can I get a list of the companies listed on the JSE?: You can find a list of the companies listed on the Main Board here.
How can I invest in ETFs?: You can invest in ETFs through a stockbroker, an investment plan, etfSA or itransact, all of which require a fee to be paid.
How do I buy and sell Shares on the JSE?: You could visit your bank and ask an investment consultant to conduct the necessary transactions on your behalf. But the more common route is to go directly to one of the many member firms. Using the sophisticated JSE trading system, your stockbroker will buy or sell Shares on your instructions. Alternatively, you could open a managed account with the stockbroker and, for a fee, he or she will decide when and what to buy or sell for you. In either case you will be charged a negotiated brokerage fee, plus VAT and applicable duties.

Aside from acting as an intermediary between the stock exchange and the investor, a stockbroker will also offer all the advice, guidance and assistance required to take you through what may seem a daunting and intimidating process. Which makes it all the more essential to choose the right stockbroker for your individual needs and investment goals.
How do I choose a good stockbroker?: In much the same way as you choose a good lawyer, doctor, estate agent, or other professional. Seek advice, solicit opinions, ask for references, and then make up your own mind according to what kind of investor you plan to be. Some stockbrokers define a “small investor” as one with less than R1m to invest; others welcome the minnows as well as the giants. Some focus on specific sectors of the market, such as mining; others spread their interests and options across the range. Some offer in-depth research and consultation for a higher brokerage fee; others offer discount rates for snappy advice and instant dealing.

A seasoned stockbroker with a good track record can become a powerful partner in the pursuit of wealth. In order for your stockbroker to buy Shares on your behalf you will be required to have sufficient funds in your stockbroking account to pay for them. On completion of a transaction you will receive confirmation from your stockbroker that the trade has taken place and that the share will be registered in your name and kept electronically on your behalf.

An instruction to sell Shares will be acted upon only once your stockbroker is satisfied that shares are held electronically on your behalf.
How do you know if a company is about to be liquidated? Are there any warning signs?: It may be difficult for an investor to know when a company is about to be liquidated. However, you may make use of public information such as financial reports and efforts by the company to raise capital. It would be in your interests as an investor to research why the company would need to raise capital.
How do I get started with trading or investing in Shares?: Begin investing
First you need to open a trading account with a stockbroker. Click here for a complete list of brokers.

If you want the broker to manage your Shares for you, you must open a managed account. But if you want to manage your Shares yourself on the internet, ask for an online share trading account.

You can find out more about what a trading account is here, and about the process of opening a trading account here. To learn more about the different costs that brokers charge, click here for comparative cost and service offering information for online share trading (please note that the information may be slightly outdated).

A broker will be able to guide you in determining what investment option suits you best. It is important to understand the risks involved, so be sure to ask your broker about them.

Please remember that all transactions on our exchange occur through a broker, so you should be sceptical of offers that “cut out the middle man”.

Online share trading

Most of the brokers focused on individual investors offer a simulation account on their website where you can test their trading platform without spending money. It is not necessary to buy software in order to trade on the JSE. Your broker should give you access to trade on their website.

Education

Brokers regularly hold seminars and workshops on the basics of the Stock Market and Shares, so please visit their websites. The JSE also holds regular showcases.

ETFs

If you’re not sure about Individual Shares, consider investing in Exchange Traded Funds (ETFs). They are ideal for the first-time investor as they offer a low-cost investment with low risk. An ETF allows you to invest in a wide variety of Shares, Bonds or Commodities through a single “share” or “unit”. ETFs can offer you ownership in the Top 40 companies, property, resource companies or physical gold, among many other things. ETFs can be bought and sold just like Ordinary Shares.

Please see the information on ETFs below:

How to invest in ETFs

List of ETFs (all the ETF providers’ websites are included in this document – but it excludes Nedbank’s BGreen ETF)

ETF brochure

ETFs a piece of cake

Introduction to ETFs

There are currently four ways to invest in ETFs:

1) Contact a stockbroker. (The stockbroker you decide upon is entirely up to you. To help you with your decision, try to find out what services each stockbroker can provide you, whether the services meet your needs and what their respective costs are.)

a. You’ll have to open an account with the broker you’ve chosen

b. You’ll be able to invest in Shares and ETFs and the broker will be able to offer you advice

c. Costs are slightly higher because of this advantage

2) ETF provider’s investment plan – contact the ETF providers directly.

a. You’ll only be able to invest in ETFs

b. Costs are lower than going through a stockbroker, but you won’t receive any advice on your investment

c. With an investment plan you’ll be able to invest a minimum of R300 a month or a R1 000 lump sum

3) etfSA online platform, which allows you to buy and sell ETFs and offers you additional information such as performance figures of each ETF. Here is their website: www.etfsa.co.za

a. You’ll only be able to invest in ETFs and not individual Company Shares

b. Costs are very similar to the ETF providers’ costs

c. An investment plan/investor scheme is also offered by etfSA where you’ll also be able to invest a minimum of R300 a month or a R1 000 lump sum

4) itransact also offers an online platform specifically designed for the financial advisor. So you’re always able to consult with a financial advisor for some additional advice: www.itransact.co.za

a. Your financial advisor can invest on your behalf

b. An investment plan is also available through them

c. You’re able to invest in ETFs, ETNs and ETF wrap funds, through their accredited financial advisors.
How do I open a brokerage account?: You can download the step-by-step guide to opening a brokerage account here.
How do I sign up for the Virtual Trader?: You can sign up for a free 30-day trial of the Virtual Trader.
How will I know which Shares to buy, and if and when to sell them?: Learning to tell good prospects from bad on the stock market is a skill that requires a lot of insight, hindsight and foresight, none of which can be acquired without doing your homework.

The best advice in the world is no substitute for legwork and research, whether it’s reading the business papers, studying the annual reports, surfing the Internet, talking to your stockbroker, or picking up the phone and quizzing a chief executive about the company’s plans for a merger or a listing. You’ll need to monitor prices and keep in touch with trends, not only in business but also in politics and society, not only at home but also in the world.

What industries are ready for the future? What industries are mired in the past? What industries are ready to make a comeback? An informed investor is a successful investor.

An uninformed investor, acting on impulse, speculation and rumour, can also be a successful investor. But not for long.
If I am currently not living in South Africa, can I still trade in South African shares?: Yes, you can. You will need to look for online brokerages in your country with operations in South Africa.
I’m a private individual and want to obtain historical Share prices/data: The JSE provides historical data on request and considers each request on a case by case basis, with the overall charge based on the value of the data, amount of data required and the effort involved in producing the data. Please forward your request through to [email protected].
I’m a private individual and want to receive SENS (market announcements) data in my personal capacity: Please consult our data distributor list and a registered data distributor will be able to assist you with your request.
I’m a private individual and want to subscribe to JSE data: The easiest way of obtaining JSE data without connecting directly to the JSE would be to contact a registered data distributor or a stockbroker. Please consult our data distributor list for a list of data distributors or our “Locate a Broker” section for a list of stockbrokers.
I’m a professional/corporate user and want to obtain ad hoc historical Share prices/data: The JSE provides historical data on request and considers each request on a case by case basis, with the overall charge based on the value of the data, amount of data required and the effort involved in producing the data. Please forward your request through to [email protected].
I’m trying to find information about what is regarded as a good price-to-earnings ratio at which to buy shares on the JSE.: The JSE can’t provide investment advice. But we can give you the definition of the price-to-earnings (PE) ratio: A valuation ratio of a company’s current share price compared to its earnings per share – calculated as the market price of a share divided by earnings per share.
I’m a professional/corporate user and want to receive currency data/company financial statements: The JSE does not provide any currency data or company financial statements. Please consult our data distributor list and a registered data vendor will be able to assist you with your request.
I’m a professional/corporate user and want to subscribe to/redistribute JSE data: Please contact the Market Data division and tell your nominated account officer what data you require. The IPS division will then guide you in the process to follow and advise you of any contractual and pricing obligations.
Is R10 000 enough to invest? / What is the minimum amount I should save to buy Shares on the JSE?: Through an investment plan you can invest a minimum of R300/pm or a R1 000 lump sum. Brokers charge different fees so you would need to investigate what those are before you open an account. If you are considering investing in ETFs then you can go directly through an ETF provider and not a stockbroker. It’s cheaper but they won’t provide you with an investment plan like a stockbroker will. You can find out more on ETFs here:www.etfsa.co.za or www.itransact.co.za

Most ETFs pay dividends, just check with your broker. You can choose to have your dividends paid into your account, or you can reinvest them back into your portfolio. However, some ETFs only offer you a total return option which means your dividends get paid directly back into your investment.
What about the risks of investing in the stock market?: Despite the JSE’s proven rate of inflation-beating returns in the long term, it’s important for every investor to remember that companies can fail, markets can collapse, and prices can fallas well as rise. You need to be patient and plan wisely.

Before you venture into the market, take careful stock of your means and motives. Do you want to invest for your own retirement? For your children’s education? For a holiday? Is income a priority, or are you looking for long-term capital growth?

Now take a look at your personal risk profile. How much can you safely afford to lose in the event of a stock market crash or correction? How long will you be prepared to wait for the market to stabilise, and will you have the courage and foresight to continue investing when prices are at their lowest ebb? Your honest answers will determine the extent of your capacity to balance risk with reward.

Either way, the golden rule is to invest only as much as you can comfortably afford after meeting your personal and household expenses. Use this “disposable income” to build yourself a choice portfolio of stocks, and you could have a lot more income to dispose of once those dividend payments start arriving.
What are binary options trading?: A binary option is a type of option where you are paid out an amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money, meaning you get paid out, while the asset-or-nothing pays the value of the underlying security. The options are binary in nature because there are only two possible outcomes. You either earn a return or you don’t. The JSE does not trade in binary options.

When buying a binary option the potential return it offers is certain and known before the purchase is made because the price is locked in. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “call”/“up” option or a “put”/“down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time.
What are Derivatives?: Derivatives comprise Futures, Options and warrants. They are securities whose value is determined by or derived from other underlying assets like Shares.
What are Exchange Traded Funds?: Exchange Traded Funds (ETFs) are listed investment products that track the performance of a basket of Shares, Bonds or Commodities. These “baskets” are known as indices, for example the FTSE/JSE Top 40 Index. An ETF can be bought and sold just like an Ordinary Share.
What are indices?: Indices can be used as a benchmark to reflect the aggregate movement of the market it represents. This number summarizes the fluctuation of Share prices on a given day. Technically, one can’t actually invest in an index.
What are shares?: Shares are units of ownership in a company. A shareholder owns a Share of the net asset value of the company. Simply put, if four people contribute R10 each to buy a cake, each of them will own a quarter of the cake. If one person contributes more money than the others, he or she will get a bigger slice of the cake.
What’s the minimum amount I should have before looking for a stockbroker?: Stockbrokers charge different fees. You would have to get in contact with one to find out how much their services will cost.
What is a good investment besides policies and property?: We unfortunately cannot comment on that, but a stockbroker would be the best person to speak to. You can find a list of stockbrokers here.
What is the difference between ETFs and SSFs?: Please see explanation of an ETF here. Single Stock Futures (SSFs) are Futures Contracts on individually listed Shares. They are standardised contracts with set specifications regarding size, expiry dates and tick movement. The value of an SSF contract is normally equal to 100 times the particular Share’s Futures price.
What is the JSE, and what’s it got to do with me?: The JSE is not only a forum for trading in Stocks, Bonds and Shares. It can also be seen as the engine-room of the South African economy. Here, companies from across the spectrum of industry and commerce gather to raise the public capital that will allow them to expand, in the process creating new jobs, products, services and opportunities.

As these companies’profits improve, so the dividends are passed on to their shareholders, in a cycle of economic empowerment that reflects the stability and well-being of a nation. But what do the ups and downs of market prices have to do with the ordinary South African? Plenty.

If you own an insurance policy, a retirement annuity, a unit trust, or even a simple savings account, the JSE is where much of your money goes to make more money for you. Directly or indirectly, the movements of the market matter to millions of South Africans, and that's why more and more South Africans are choosing the direct route to the market – by investing on the JSE.
What is the Virtual Trader?: The JSE’s Virtual Trader is a simulated trading platform, which allows you to experience real-time trading, off a 15 minute delayed price feed, on any of the various asset classes which are currently listed on the JSE.
What protection do I have?: The JSE guarantees the settlement of all transactions that are conducted through the central order book in the JSE trading system.

The JSE has in place rules and directives that govern the capital requirements of members in order to ensure, as far as possible, the continuity of their business. In the unlikely event of a member default, clients would be able to claim against the JSE Guarantee Fund, which was set up to offer protection and reassurance to investors.
When is the right time to buy?: We unfortunately cannot comment on that, but a stockbroker would be the best person to speak to. You can find a list of stockbrokers here.
Where can I find a list of approved JSE-approved stockbrokers?: You can find JSE-approved stockbrokers. These brokers trade in Bonds and Equities, as well as Derivatives.
Where can I find a reliable source for stock information?: You can find information on Shares and companies through various financial news sites and television channels.
Where can I find information on JSE events and workshops?: You can find information about what’s happening at the JSE.
Where can one view the annual results of listed companies in their respective sectors on the JSE website?: We do not have the annual results of companies on the website. We do have an alphabetical list which is available here. You will need to go each company’s individual website to find their reports.
Which bank in South Africa do you recommend as an investment for individuals?: We unfortunately cannot comment on that, but a stockbroker would be the best person to speak to. You can find a list of stockbrokers here.
Who do I contact for ad hoc FTSE/JSE Indices data requests?: All requests for FTSE/JSE Indices and hoc data requests should be sent to [email protected]. Please tell us what index data you require as well as what fields and whether it is monthly or daily data that you require. We will then guide you in the process.
Why do prices on the JSE and other markets go up and down?: No market operates in a vacuum. In our inter-connected world, the smallest event, rumour or opinion can spark a swift market reaction.

Prices can rise as quickly as they fall, confounding the plans of some industries while rescuing others from the brink of disaster. These random forces – the “Great Unknowns” – combine with the everyday laws of supply and demand, and the cyclical nature of business itself, to shape the peaks and valleys of a dynamically shifting market.

You may not be able to predict these forces, but by analysing and understanding them, you will be better equipped to weather the lows as you wait for better times.
Why is the JSE called the securities market rather than the stock exchange?: The JSE trades a variety of financial instruments, including Shares (also called Stocks or Equities) and Derivative Instruments, commonly referred to as financial securities.