The Zimbabwe Stock Exchange: How does it work?
By Livingstone Mtetwa.
THE Zimbabwe Stock Exchange Limited (‘ZSE’) is a licensed securities exchange in terms of the Securities and Exchange Act (24:25). Its core mandate is to facilitate long term capital raising through listing of securities as well as offering secondary market securities trading and issue regulation services.
The ZSE is the official stock exchange of Zimbabwe. Its history dates back to 1896 but has only been open to foreign investment since 1993. The exchange has about a dozens of members, and currently lists 63 equities. There are two primary indices, the ZSE All Share and the ZSE Top 10.
How Does the Stock Market Work?
The stock market helps companies raise money to fund operations by selling shares of stock, and it creates and sustains wealth for individual investors. Companies raise money on the stock market by selling ownership stakes to investors. These equity stakes are known as shares of stock.
Steps to begin investing on the Zimbabwe Stock Exchange
- Open a Trading account. Practically more than one account is required for an investor to invest in the stock market. …
- Submit Know Your Client (KYC) Documents.
- Deposit investment funds with your custodian or stockbroker.
- Place orders with your stockbroker.
Collecting dividends—Many stocks pay dividends, a distribution of the company’s profits per share. Typically issued each quarter, they’re an extra reward for shareholders, usually paid in cash but sometimes in additional shares of stock.
Six Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for ZIM Integrated Shipping Services in the last year. There are currently 1 sell rating and 5 hold ratings for the stock. The consensus among Wall Street research analysts is that investors should “hold” ZIM shares.
The writer has made efforts to confirm the validity of this information. However, this is just an informative article. Business Wave Africa.com will not be held liable to any loses incurred from the use of information provided in this article.