Insider Secrets To Stock Market Operation

16th October, 2008
The primary market is where you buy shares on public offer through banks or stock brokers. It is the easiest means of starting a stock investment career. Prices are cheaper and you don’t need a stock broker to participate in the market. You need not pay any brokerage commission. You however need to be informed that banks collect commission if you want to pay with bank draft.

Investors are discouraged at the recent happenings in the primary market whereby share certificates take quite a long time to be issued by registrars of the companies on issue. We hope that the problem will be solved when the e-allotment policy commences in 2009. once the policy takes off, shares will be allotted to individual investor’s CSCS account which implies that anyone who want to invest in shares from then on must have a CSCS account whether on the primary or secondary market.

The secondary market is where trading of shares occur. You buy and sell through a stock broker. You must have a CSCS account to do this. Prices are higher and you need a lot of investment education to be able to successfully play in this market. Stock brokers charge commission when you buy or sell. This commission is charged whether you gain or lose. Your broker will issue a contract note to you as evidence of your transaction. You’ll also receive trade alert when any trading is done on your shares. The secondary market is the only place where you can make short term profit.