How investors can benefit via FINSEC
Putting money in a securities market can seem intimidating at first, especially to new risk averse investors.
AFTER all, the market can be unpredictable. However, investors can step out of their comfort zones to realise significant gains by investing in securities on FINSEC. Buying shares means taking on an ownership stake in the company an investor purchases equity in. This means that investing on the securities market also brings benefits that are part of being one of a business’s owners.
Shareholders vote on corporate board members and certain business decisions. They also receive annual reports to learn more about the company. Owning shares in the company one works for through the Employee Share Ownership Plan (ESOP) can be a way to express loyalty and tie their personal finances to the success of the business as a whole.
Investors can benefit from income in the form of a dividend. While not all securities offer dividends, those that do deliver annual payments to investors. These payments arrive even if the stock has lost value and represent income on top of any profits that come from even- tually selling the stock. Investors can hold on to their shares whilst benefiting from dividends.
Capital markets should be a priority place for savings. While market performance is often volatile in the short term, investing on the capital markets in the long term however, generates higher returns than keeping one’s savings under the mattress. Should a secondary market investor want to exit they are given the option of exiting whenever they want to. All they need to do is to contact a stock broker.
Given that the price of securities fluctuates up and down depending on the performance of the companies as well as other developments in the economy there is a real opportunity for investors to make a profit in the sale of securities in the secondary market.
The general principle is very simple; one should buy a security when the price is low and sell the security when the price is high.
Investors benefit from protection through the obligation of FINSEC listed companies to disclose information related to their everyday business.
Price sensitive information, which has an impact on prices, is published by FINSEC and is available to the public. Shareholders, through the transparent listing and trading rules, are in a position to be updated regularly and on a daily basis on the events taking place at the company.
Based on real-time demand and supply of securities, they are able to make decisions for investments in that type of security.
For investors who wish to put money into different types of investment products, FINSEC has the benefit of providing diversification.
It has a wide array of securities that investors can benefit from, FINSEC avails investors with the potential for large and rapid gains, by providing a wide array of securities helping investors reduce risk or overly conservative investment strategies.
FINSEC is a huge auction house. Every day, investors are buying and selling their shares. This makes securities a liquid investment.
When investors want to exit an investment, it is quick and easy to find a buyer. Other assets are much more difficult to sell.
If you invested in an investment property, it could take time to find a buyer and get your money out. With securities, investors can find a buyer the very next day.
The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities exchange and a member of the Escrow Group. The Escrow Group has interests in the financial services and technology sectors. Corpserve Registrars and Escrow Systems are the other members of the group.