How do you buy/ sell shares?
1. In the Primary market from a new issue (IPO)
Shares can be purchased directly from the issuing company. The company publishes a prospectus with information about the company, financial status, future plans and the offer.
To buy shares: Once you have read the prospectus carefully, you may fill up an application form to purchase the shares. You can lodge these shares directly into the Central Depository System (CDS) of the CSE or hold the certificate.
To sell shares: You will have to open a CDS account through a stockbroker and instruct them to sell your shares in the secondary market.
2. On the Secondary market through a Stockbroker
This is a market in which an investor could either buy from or sell to another investor, subsequent to the original issuance in the primary market.
You must first find yourself a stockbroker /custodian bank and open a CDS account through that participant.
Once they confirm your CDS account number, you can contact your broker through the following ways to trade in the secondary market.
- Phone
- Fax
- Personal visit or
- The Internet
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