Investing is making your money grow, hence building wealth. It involves using your savings to buy income earning assets such as shares, bonds or real estate.
A share is a representation of ownership in a company. When you buy shares, you become a part owner of that company and have the potential to earn returns through dividends and capital gains.
A Stockbroker facilitates buying and selling of shares on the Malawi Stock Exchange (MSE) on behalf of clients for a fee. Their role is to act as a link between investors (buyers and sellers) of shares on the MSE and execution of trades. They also provide investment advice, research, and market insights
There are currently 17 companies listed on the MSE that one can invest in, as shown below.
The minimum number of shares that one can buy on the MSE is 1 (one) share.
The Stockbroker charges a fee based on the value of shares bought or sold as follows:
Value added tax (VAT) of 17.5% is charged on the brokerage fee and a basic charge of K50.00.
* Dividend income – This is the distribution of profits by the company that the investor has shares in.
* Capital Gains – The difference between the purchase price and the selling price of a share (assuming a higher selling price at the time of sell).
* Liquidity – Shares can easily be converted into cash or can be partially sold.
* Diversification – Investing in shares can lead to diversification of your income.
* Price risk: The share price may fall if the company is not performing well.
* Liquidity risk: The company may not pay a dividend based on performance. The shares of a company may take some time to be sold in cases of low demand.
One must open an investment account with Continental Capital Limited and attach the following documents:
* Copy of National ID (front and back)
* Current Payslip or 3 months bank statement
* Utility bill
For more information you can contact our offices in Blantyre (Ulimi House) or Lilongwe (Gowa House), email capital@continental.mw or visit our website https://continentalcapital.mw/download-forms/ to access account opening forms. Our experienced team will guide you through the account opening process, assess your financial goals, and provide suitable investment options based on your investment goals.
