For one to begin buying and selling shares at the Nairobi Securities Exchange (NSE) you need to:
- Open a CDSC account with a stock broker or an investment bank. The account is free.
- Deposit the amount of money you intend to use to purchase shares in your stock broker’s account, which is then credited to your CDSC account.
- Research on the best buys in the market. This could include firms with high profit margins, impressive market share, high dividend payout, high earnings per share, innovative, stable and well managed, and future growth prospects. Also have an exit strategy.
- Place a purchase order when you identify a target share. When selling, you place a sell order.
- Once you buy shares, you can only sell them after three days since the local bourse operates on the T+3 system.
- The amount you can start trading with can be relative and will depend on the kind of shares you buy or want to buy.
- Note that the minimum number of shares you can buy is 100.
- You may also want to trade online. To do this, ask your broker if he or she has an online share trading platform. Some of the brokers with an online platform include SBG Securities, Dyer and Blair, and ABC Capital.
- Note that after selling your shares, it will take between three days to seven days for money to be sent to your bank account from your CDS account.
- After selling your shares, you will be required to make a payment order, failure to which money cannot be debited from your account. You will be required to fill in a form stating the amount you want paid and to which bank account.
- Note that your bank account must be the one you stated when opening your CDS account. If not, make plans to have it changed.
- The turnaround period once money is debited from your CDS account is 48 hours for EFT and is free!!
