What is a share? A share represents your ownership in a company. As a part owner you are investing in the future growth of the company.

What are the types of shares? Ordinary Shares N A right to vote at the company's Annual General Meeting. An entitlement to a share of dividends declared. If the company is liquidated, shareholders will be settled after all the creditors, depositors, debt holder dues has been settled.

Non-Voting Ordinary Shares X These shares have the same characteristics of Ordinary shares except the right to vote at the company's Annual General Meeting. Preference Shares P Most preference shares have a pre-determined dividend rate which you are entitled to receive. A claim on the company's earnings before payment to ordinary shareholders. Entitled to priority over ordinary shares if the company liquidates.

Warrants W This is a certificate giving you the right to buy shares at a stipulated price at a future date. Is investing in shares risky?

Student's Guide to Investing in Colombo Stock Exchange CSE

However there are strategies to reduce and manage risk through the diversifying strategy 1. Your portfolio can be a mix of equity and debt instruments. In the share market equitiesyou can invest in several sectors.

Thereby in an instance when one sector performs badly and another very well, you can offset your losses in one sector from the gains you made in the other sector. Within a sector you can invest in several companies. Thereby if one company does not do well, your entire investment returns do not suffer as other companies may perform well.

Benefits of Investing in Equity Capital Gains - This is when a share's selling price exceed its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital Gains are free of tax. Dividends - A company may decide to payout a portion of its earnings to shareholders. But companies are not required to pay dividends. Rights Issues - The company may extend this privilege to existing shareholders to buy shares at a specified and usually a discounted price, usually in proportion to the number of shares already owned.

Distribution by the company - Shares shall be offered to the holders of existing shares in a manner which would, if the offer was accepted, yusaini yusof forex the relative voting and distribution rights of those shareholders.

Liquidity - Shares quoted on a stock market are generally liquid. Therefore, they can be sold easily and you can get your money back in a few days. Higher Returns - In the longer term, shares have ensured a higher return to investors. Hedge against inflation - Shares are a good investment in an inflationary environment, since share prices increase to protect investors how to buy shares in colombo stock market the effects of inflation.

In the Primary market from a new issue IPO Shares can be purchased directly from the issuing company. The company publishes a prospectus with information about the company, financial status, future plans and the offer. Once you have read the prospectus carefully, you may fill up an application form to purchase the shares.

You can lodge these classification of companies in stock market directly into the Central Depository System CDS of the CSE or hold the certificate. You will have to open a CDS account through a stockbroker how to buy shares in colombo stock market instruct them to sell your shares in the secondary market.

On the Secondary market through a Stockbroker This is a market in which an investor could either buy from or sell to another investor, subsequent to the original issuance in the primary market. Once they confirm your CDS account number, you can contact your broker through the following ways to trade in the secondary market. Phone Fax Personal visit or The Internet You must clearly instruct your broker of the Name of the company Number of shares The price of the shares which you wish to buy or sell.

Brokerage Fees - 0. Minimum brokerage floor - 0. The Broker Firms are expected to insert 0.

For More COLOMBO STOCK EXCHANGE Level 4, West Block, World Trade Centre, Echelon Square, Colombo 1, Sri Lanka. Non-Voting Ordinary Shares X.

These shares have the same characteristics of Ordinary shares except the right to vote at the company's Annual General Meeting.

Lanka Securities (Pvt) Ltd. - Sri Lanka Stock Brokers

This is a certificate giving you the right to buy shares at a stipulated price at a future date. However there are strategies to reduce and manage risk through the diversifying strategy. Benefits of Investing in Equity. In the Primary market from a new issue IPO. Shares can be purchased directly from the issuing company. On the Secondary market through a Stockbroker. This is a market in which an investor could either buy from or sell to another investor, subsequent to the original issuance in the primary market.

Investing in Shares ~ Colombo Stock Exchange

You must clearly instruct your broker of the. Transactions up to Rs. The CSE trading records will indicate the brokerage as zero for transactions over Rs. No withholding tax or stamp duties are charged on transactions.

COLOMBO STOCK EXCHANGE Level 4, West Block, World Trade Centre, Echelon Square, Colombo 1, Sri Lanka. Sri Lanka Rupee Exchange Rate. Labels colombo stock exchange 1 colombo stock exchange listed 1 colombo stock exchange listed companies 1 colombo stock exchange trade summary 1 equity market 1 top gains stocks today 1 trade summary 1.

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