Who to Invest in and Where to Find Them
Overview
The purpose of this module is to give you insight into accessing the list of companies that you are able to invest in as well as how to access their information in order to guide your investment decisions going forward.
By the end of this module, you should have a grasp of the following questions:
- Who am I able to invest in?
- How do I access their information?
- Who is the JSE?
Who to Invest In?
You have reached the point of your investment journey where you are ready to start investing. You have learnt about the basics of investment and the types of shares that you can buy, and now it is time to decide which companies you want to buy shares in.
Buying shares in a company is not as simple as just deciding on the company that you want to invest in. The companies you choose to invest in have to be publicly listed on the Johannesburg Stock Exchange (JSE) before any of their shares can be bought and traded.
The names of the companies that are listed on the JSE can be found on the JSE website. Once you have had a look at the list, it is important that you understand the company and industry before taking the leap and buying shares in them. Accessing and looking at different company information that is available to current and potential shareholders is a great way to help guide your thinking when deciding which companies to invest in.
Accessing Company Information
Companies that are listed on the JSE have certain requirements that they need to meet in order to be and remain listed. One of these requirements is ensuring that both current and potential shareholders have access to relevant information such as:
- Financial performance,
- Change in leadership/ directorship,
- Annual General Meeting (AGM) results/ feedback.
This information is made available on request. The information is usually accessed through each company's website via a dedicated investor section. Information is also accessible via printed media such as newspaper publications when applicable, such as the results of a company.
Who is the JSE?
The Johannesburg Stock Exchange (“JSE”) is the platform of choice for local and international investors looking to invest in companies and gain exposure to the leading capital markets in South Africa and the broader African continent. They offer investors access to a wide range of companies to invest in. This is all backed up by the regulatory services and post-trading support that the JSE offers to investors.
The JSE was formed in 1887 during the first gold rush in South Africa. In 1963, after the first law that covered financial markets was passed in 1947, the JSE joined the World Federation of Exchanges and upgraded to an electronic trading system in the early 1990s.
In 2003, the JSE launched an alternative exchange, AltX, for small and mid-sized listings. They then bought the South African Futures Exchange (SAFEX) in 2001 and the Bond Exchange of South Africa (BESA) in 2009. Today, they offer access to five financial markets namely:
- Equities
- Bonds
- Financial
- Commodity
- Interest Rate Derivatives