Functions of JSE
What do financial institutions gain from the JSE?
Gives opportunities to financial institutions such as insurance companies to invest their funds in shares.
Refers to the amount of money the investor gets in addition to the original investment amount.
Return on investment
Refers to a small group of people who informally/voluntarily make contributions into a savings fund.
Mutual funds/Stokvels
Companies sell/issue portions of its ownership to shareholders to obtain capital/funds.
Shares
Shareholders are the last to be paid, if the company is declared bankrupt liquidated.
Ordinary Shares
Who does it provide a link between?
Acts as a link between investors and public companies.
Refers to the doubt/uncertainty that exists regarding the extent of any gains/losses that an investor could make.
Risk
Refers to investing in an existing business.
Business ventures/ Venture capital
The investments of a number of investors are pooled together.
Unit Trusts
A fixed rate of return is paid on this type of shares.
Preference Shares
Expects tell us what about the shares?
Shares are valued and assessed by experts.
Refers to the duration of investment may vary from short, middle or long-term nature.
Investment period
Refers to investing money for a certain period of time.
32-Day notice accounts/ Call Deposits
Money cannot be withdrawn/ added during the stipulated period.
Fixed Deposits
Issued as compensation for unpaid dividends.
Bonus Shares
How often are share prices published?
Keeps investors informed on share prices by publishing the share prices daily.
Refers to the speed with which an investment can be converted into cash.
Liquidity
Refers to borrowed capital from the public.
Debentures
The government offers its citizen the opportunity to invest as a strategy to encourage savings in the country.
RSA Retail Savings Bonds/ Government Retail Bonds
They receive dividends after all other shareholders were paid.
Founders Shares
Refers to a general increase in the price of goods and services over time.
Inflation rate
Refers to monthly premium contributions to an insurance company and is guaranteed a predetermined fixed amount at the end of the period.
Endowment/ Life insurance policies/ Retirement Annuities