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Understanding the Stock MarketThe Trinidad and Tobago Stock Exchange
Investing in the Stock Market
The Trinidad and Tobago Stock Exchange1. What is the Trinidad and Tobago Stock Exchange?The Trinidad and Tobago Stock Exchange (TTSE) operates under the Securities Industry Act 2012. It is a centralized market for the trading (buying and selling) of stocks (shares) that are listed with the TTSE.
2. How does a Stock Exchange work?The Stock Exchange provides for an orderly means of trading listed stocks and ensures that the prices being bid and asked for are properly disclosed to the public.
3. What are the trading hours for the TTSE?The TTSE is open for trading every weekday from 9:30am to 12:00 noon. There is no trading on weekends, public holidays or on Carnival Monday and Carnival Tuesday.
Investing in the Stock Market1. What are Shares?Shares represent ownership in part of a company. When you buy a share in a company you become a joint owner of the business along with other shareholders and share in the future (profits or losses) of that business. Shares are also referred to as equity or stocks.
2. What are the different types of Shares?There are primarily two types of shares listed on the TTSE. They are Ordinary Shares and Preference Shares. Ordinary Shares These are shares that represent ownership in a company and give the shareholder a vote at shareholders meetings and a proportionate but unspecified claim on profits. Profits are paid out to all shareholders as dividends.
Preference Shares These shares entitle the shareholder to certain rights and privileges not enjoyed by ordinary shareholders. The major privilege is that preferred shareholders are entitled to dividends at a predetermined rate which must be paid out of earnings before any dividends are paid to ordinary shareholders.
3. What is a Closed-End Mutual Fund?A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an Initial Public Offering (IPO). The fund is then structured, listed and traded like a stock on a Stock Exchange. Also known as a "closed-end investment" or "closed-end mutual fund."
4. What are the risks and rewards of investing in the stock market?Stocks are an effective way to generate returns from capital gains and dividends. As a general rule the higher the potential return on an investment the greater the risk. The stock market is generally fickle, as share prices move up and down. Before investing in the stock market you should understand your risk tolerances and financial objectives. WISE stands ready to assist you in this regard. Home | About Us | Broker/Dealer Services | Market News | Investor Guide | Contact Us © Copyright 2007-2018 West Indies Stockbrokers Limited. All Rights Reserved. Terms of Use | Privacy Statement |