THOUGHT OF THE WEEK
UNDERSTANDING THE STOCK MARKET (PART 3)
The Stock Market is made up of different participants who perform various roles to make the market run effectively. The players on the Ghana Stock Exchange
include the following;
• Licensed Dealing Members: Licensed Dealing Members also known as stockbrokers are licensed professionals who buy and sell securities on behalf of investors. The broker act as an intermediary between the stock exchange and investors by buying and selling shares on behalf of investors. Investors who want to buy listed shares on the Ghana Stock Exchange must do so through a Licensed Dealing Member.
• Custodian: Custodians are institutions, which hold customers securities for safekeeping. This minimizes theft and loss of securities. The operation of stock market is in harmony with the stock exchange to transfer shares to trading accounts for trading.
• Investment Advisors: Investment advisors prepare companies who wish to issue shares to the public. They take the companies through the listing process in compliance with stock market regulations.
• Fund Managers: Fund managers are professional who invest portfolios for clients. The fund managers conduct market and securities research and make recommendations to investors. Mutual funds, pension funds and institutional funds use fund managers to make securities buying and selling decisions.
The stock market is a vital component of an economy by helping in capital formation. It allows corporates and governments to raise capital through the issue of securities. It also allows investors to share in the financial benefits of listed companies.
This weekly report is the copyright of NIMED Capital Ltd. (NIMED), an investment banking company licensed and regulated by the Securities and Exchange Commission (S.E.C.) of Ghana as Investment Advisers as well as the National Pensions Regulatory Authority (N.P.R.A.) as an approved Pension Fund Manager. Information and opinions herein have been compiled or arrived at based on information obtained from sources considered reliable; we therefore do not hold ourselves responsible for its completeness or accuracy. All statements of opinion, projections, forecasts, or those relating to expectations regarding future events or performance of investments represent NIMED’s own assessment and interpretation of information currently available to NIMED, which are subject to change.