Things You Need To Know Before Investing In The Malaysian Stock Market
A stock market, equity market or share market is the aggregation of buyers and sellers of stocks , which represent ownership claims on businesses, these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
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1. Open a Central Depository System (CDS)
CDS is a means of representing ownership and movement of securities (shares). By having a CDS account, you can have access to transfer and trade shares through an online platform.
There are two types of CDS account: direct and pledge. If you have a direct account, the dividend checks and prospectus will be mailed to your house.
If you have a pledge account, the stockbroker will receive the dividend payout and prospectus on your behalf and he or she will bank it to your account.
2. Evaluate and decide the stocks you want to invest
There are several things you need to determine before buying your first stock. Determine what type of industry and subsector you are comfortable to invest in.
There are over 500 listed companies in Malaysia and it can be overwhelming to make your first choice in stock investments.
Other factors you need to consider include the risk appetite of your investment portfolio and also the amount of capital you have to invest in stocks. It is important to understand your goals and financial capability so that you can set up a proper investing plan for yourself.
3. Start buying and selling shares
Before you start buying shares, you need to make sure your trading account has credit. You can do that through an online transfer payment via your broker or internal bank transfer.
After deciding the first stock you would like to invest in, key in your order at the online system provided by your stockbrokers, or call your remisier to make the order.
If the buying order you request matches a selling order (in terms of pricing), you will receive confirmation of the trade. The stockbroking firm will then send out contract notes to you specifying details of the transaction.
4. Monitor and review your investment portfolio
Shares are highly sensitive to economic, political and several factors depending on the business nature of the company you invest in.
So it is important for you to keep track of the daily news and announcement by the companies to ensure you are not left behind to review your investments when it is necessary.
With Bursa Market Place, You can now keep track of all corporate announcements, share price movement, research reports by investment firms and banks on Bursa Market Place. There are also several tools to help you make other investment decision
Felix Research Deals In Malaysian stock market providing their research experts helping all the traders of Malaysian stock market by providing bursa malaysia stock tips, share market tips and stock recommendations.