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Copyright© JSE Limited 2009 1

JSE Equity Market

How do I invest?

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Where does trading take place?

From Open Outcry …..1887 To Electronic Trading…1996

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How do I invest?

Buyer

A South African investor picks up his copy of the paper or financial

magazine

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How do I invest?

Buyer

So many companies. Where do I

start?

I’ll look at the companies’

profits and how well their share

prices have grown.

I can always ask my

stockbroker for advice

The investor does research on the economic environment and how well

companies are performing

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How do I invest?

Buyer

Hmm…Sasol shares look like a good investment

Stockbroker

He’s interested in purchasing some shares, so he decides to place a

BUY order for shares with his stockbroker.

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How do I invest?

Stockbroker

I can also give my client

advice…

His broker then sends that order electronically into the JSE market

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How do I invest?

Stockbroker

I must get the best price for

my client

The JSE then sends this order, via a communications lines, up to London

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At the same time…

Seller

My investment has done

well…I think I’ll sell

A South African investor, wants to sell her shares

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At the same time…

Stockbroker

Seller

I can also give my client

advice…

She places a SELL order for her shares with her stockbroker

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How do I invest?

Stockbroker

I must get the best price for

my client

Her broker then sends that order electronically into the JSE market

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A Trade

Seller Buyer

I SOLD my

shares!

I BOUGHT my

shares!

The BUY and SELL orders

MATCH and a TRADE happens

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The Result

Seller Buyer

I got my MONEY!

I got my SHARES!

Stockbroker

Stockbroker

And…we were both

paid for our services!

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So what happens?

SellerBuyer

The Share…and many others

Through

a

stockbroker

At the best agreed price