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ekath nagala yai wageee....
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::::: Share Market Investors Club @ EK :::::
- Thread starter argan
- Start date
ekath nagala yai wageee....
macho m me ha ha pura kiyala expolanka IPO eken thamai stock wade patan gaththe , mata meka gana podddak advice ekak diyanko...expolanka gana mokada hithannee????
hat 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?
There is an element of risk. 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.
2. In the share market (equities), you 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.
3. 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, maintain 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 from the effects of inflation.
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?
There is an element of risk. 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.
2. In the share market (equities), you 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.
3. 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, maintain 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 from the effects of inflation.
ow do you buy/ sell shares?
1. 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.
To buy shares: Once you have read the prospectus carefully, you may fill up an application form to purchase the shares. You can lodge these shares directly into the Central Depository System
2. 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.
You must first find yourself a stockbroker /custodian bank and open a CDS account through that participant.
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.
A single tier settlement cycle of trade day + 3 (T+3) is adopted to settle transactions.
The buyer must make payment for shares bought by the 3rd trading day after the purchase (T+3)
The seller will receive payment for shares sold by the 3rd trading day after the sale (T+3)
Transactions up to Rs. 50 Million - 1.02%
Divided as follows:
Brokerage Fees - 0.640%
CSE Fees - 0.084%
CDS Fees - 0.024%
SEC Cess - 0.072%
Share Transaction Levy - 0.200%
1. 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.
To buy shares: Once you have read the prospectus carefully, you may fill up an application form to purchase the shares. You can lodge these shares directly into the Central Depository System
2. 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.
You must first find yourself a stockbroker /custodian bank and open a CDS account through that participant.
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.
A single tier settlement cycle of trade day + 3 (T+3) is adopted to settle transactions.
The buyer must make payment for shares bought by the 3rd trading day after the purchase (T+3)
The seller will receive payment for shares sold by the 3rd trading day after the sale (T+3)
Transactions up to Rs. 50 Million - 1.02%
Divided as follows:
Brokerage Fees - 0.640%
CSE Fees - 0.084%
CDS Fees - 0.024%
SEC Cess - 0.072%
Share Transaction Levy - 0.200%
What is Central Depository Systems (Pvt) Ltd?
Central Depositors Systems (Pvt) Ltd (CDS) is a wholly owned subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.
How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organization may call for documents establishing your identity. It is possible to open and operate an account on the same day.
Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number.
Your CDS accounts should be operated through your Participant organization, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.
What is the purpose of my CDS account?
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.
Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.
Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 7 trading member firms authorized to buy and sell shares
What do I deposit in a CDS account?
Shares, debentures, warrants, government securities and units of closed end funds
Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.
Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize.
Be sure you have already opened an account or are ready to do so.
You will be issued with and assisted to complete a Security Deposit Form.
Sign your form with the signature used when buying the shares.
Return the form to the participant together with the certificates you have included on the form to be deposited.
You will be given a receipt as evidence of your deposit.
The participant will forward the form and the certificate to CDS
CDS will forward the certificates and forms to the company’s shares registrar for verification.
When the registrar confirms the certificates as genuine, the shares will be deposited in your account.
Once the shares are in your account you can trade in them.
How do you withdraw shares from CDS?
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.
How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.
The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer
How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.
What do I get to prove I have deposited securities?
You get the receipt of the deposit form
You get a monthly statement if you have a deposit or a trade that month.
You get a quarterly statement if you have not had a trade for three months.
The statements are issued directly to your address as indicated on the account opening form.
Central Depositors Systems (Pvt) Ltd (CDS) is a wholly owned subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.
How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organization may call for documents establishing your identity. It is possible to open and operate an account on the same day.
Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number.
Your CDS accounts should be operated through your Participant organization, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.
What is the purpose of my CDS account?
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.
Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.
Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 7 trading member firms authorized to buy and sell shares
What do I deposit in a CDS account?
Shares, debentures, warrants, government securities and units of closed end funds
Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.
Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize.
Be sure you have already opened an account or are ready to do so.
You will be issued with and assisted to complete a Security Deposit Form.
Sign your form with the signature used when buying the shares.
Return the form to the participant together with the certificates you have included on the form to be deposited.
You will be given a receipt as evidence of your deposit.
The participant will forward the form and the certificate to CDS
CDS will forward the certificates and forms to the company’s shares registrar for verification.
When the registrar confirms the certificates as genuine, the shares will be deposited in your account.
Once the shares are in your account you can trade in them.
How do you withdraw shares from CDS?
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.
How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.
The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer
How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.
What do I get to prove I have deposited securities?
You get the receipt of the deposit form
You get a monthly statement if you have a deposit or a trade that month.
You get a quarterly statement if you have not had a trade for three months.
The statements are issued directly to your address as indicated on the account opening form.
I want to choose a broker from below list since I willing to use CDAX, please help me to find a best broker.
ASIA Securities.. CDAX එකයි..DF 2ම තියෙනවා.. portfolio eka minimum ganak ona ne
ASAHA nam portfolio eka minimum 2laks ona..eke DF nam tiyenwa..CDAX genanam danne na.
ASIA Securities.. CDAX එකයි..DF 2ම තියෙනවා.. portfolio eka minimum ganak ona ne
ASAHA nam portfolio eka minimum 2laks ona..eke DF nam tiyenwa..CDAX genanam danne na.
machan mama last week eke asia eke reg una..minimum gaanak ona na.direectfn login denawa,cdax nuth thiyenawa.mage asha n sampath account dekama man asia ekata transfer karagatta.. dan kisi aulak na brokers lage lokuwa balanna onath na mata onanam ewelema sell or buy kara
