JSE Shares List (Complete A-Z)

 

 

An introduction to JSE Shares

The JSE began in 1887, at the height of the first South African gold rush. The JSE adopted an electronic trading system in the early 1990s after the first financial market regulation law was passed in 1947. In 2005, the bourse demutualized and began trading independently on the stock market.

The Johannesburg Stock Exchange (JSE) Limited is a South African institution that facilitates the trading of jse shares in listed firms using cutting-edge technology and first-rate services.

As such, the JSE is the heart of the South African economy, where businesses looking to thrive can connect with investors looking to diversify their holdings.

Investors are safeguarded by rules governing stock broking firms and listed companies, and the JSE distributes funds raised in the market to its users in a safe and timely manner. In this article, we provide a useful guide to better understanding shares trading on the JSE.

 

What are shares?

Simply put, a share is evidence of one’s status as a shareholder in a corporation. More shares mean more ownership in the company, and a shareholder is someone who owns shares of a publicly traded company. A share certificate serves as evidence of ownership and is now stored digitally.

If you own shares in a corporation, you have the right to a cut of the profits and to exercise any voting rights that come with those shares. It’s crucial to remember that just because you have stock in a firm doesn’t give you any automatic rights, such as a vote or the ability to take physical assets.

Business expansion, new product development, and other revenue-generating endeavours necessitate the sale of shares, and the proceeds are used to finance these activities.

There are several sorts of shares that may be purchased from these companies, and they may sell their shares to the public or to private investors.

 

Preferential shares

These shares are a hybrid of debt and equity since they provide a fixed dividend and the opportunity for capital appreciation. They fall in the grey area between bonds and common stock.

Capital returns (return on investment) on preference shares can be larger than those on bonds. Investors in these shares, however, do not have a voice in corporate decisions.

 

Ordinary shares

These are the stocks that a company issues to the public in order to gather funding. The owners of ordinary shares have significant influence over the company’s operations and are entitled to a vote in shareholder meetings and the election of directors.

They are financially invested in the success of the business. Capital gains from these stocks may exceed those from bonds. That said, ordinary shares are more risky than bonds since their future capital worth is not guaranteed.

 

Exchange Traded Funds

Investing in exchange-traded funds, or ETFs, is a common practise. Mutual funds that track an index attempt to replicate the results of that index. An investor can have exposure to the performance of an index without having to own shares in each company that makes up the index.

Before exchange-traded funds (ETFs) existed, investors who wanted to build a portfolio that closely tracked the FTSE/JSE All Share index had to purchase more than 150 individual stocks.

 

Benefits of investing in shares

Trading in shares can help you build wealth for the long term. Even the most conservative investors typically seek some form of regular income from their investments. If you want to save and build wealth for the future on a very small amount of money, investing in shares is a great option.

 

 

Frequently Asked Questions

 

 

Is it safe to trade shares on the JSE?

 

Yes, by providing a transparent environment for trade, the JSE is helpful in fraud detection and prevention in the cause of market activity.

 

What are the benefits of trading shares on the Johannesburg Stock Exchange?

 

When compared to other common investments like bank accounts and real estate, shares have historically provided the highest returns. The stock market is a good way to try to outpace inflation. The government of South Africa aims for an inflation rate between 3% and 6%.

 

What is the minimum amount to buy shares?

 

When it comes to investing, the bare minimum isn’t always the same across all asset classes or types of stocks. The entry point for several Exchange Traded Funds (ETFs) is R300/month or R1000/investment.