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Foreign Investments for tourists in the stock market.

July 25, 2019
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5 minutes read
Foreign Investments for tourists in the stock market.

As you visit many foreign countries, you might fall in love with the people’s culture. Then, you may try to find something that will keep you connected with them. What about making an investment? This will keep you visiting more and more often. What then is better than investing in buying stocks, where you can keep track on them online, without necessarily having to make constant visits? Here is a brief overview of the stock market.

Stock exchange, also known as a securities exchange, is a platform for brokers and stockholders to buy and sell shares of bonds and stocks. It is good to have an idea of the current stock market before you decide to invest. When you buy these shares, you should consider the fact that it is not a quick way to get rich. It takes time for you to see the benefits. You should have an idea of the following first;

1. The initial process.

Companies do the public offering, by listing the prices for their shares. Investors then buy those shares and the proceeds are used by the companies to grow the business. The investors can then sell their shares through the same platforms to other investors, making it a continuous cycle.

2. It involves making bids.

Buyers offer bids which are the highest amount that they are willing to pay. This then leads to a bargain since normally the seller’s price is usually higher.  Either the seller or buyer will adjust their prices so that they can come to a final agreement.

3. What determines the prices?

This is a question that is asked frequently by new investors. Demand and supply determine the price. The higher the number of buyers, the higher the buying price will be. If there are a lot of shares at a companies’ disposal, the price will become lower. The asking price and offer price determine the final selling price, whereby the different parties come to the final price agreement.

4. It is generally a risk-taking venture

Risks are a part of any investment. The market history for a particular business can be very nice, and once you invest, a downfall starts. Similarly, a new business in the stock market can be a risky go to, but the profits gained in the long run become plenty.

5. Avoid complicated businesses

It is advisable to buy stocks in companies that you frequently use their products. Also, a go-to company will be one where the CEO is also a shareholder. This shows some level of trust. It is advisable to understand a business’ model before you decide to invest.

6. Go for a debt-free company

It is important to invest in a company that is free from debt. A company full of debts is a red flag because your bid is what will probably be used to pay off the debt instead of being used in the growth of the business.

7. Opt for using a stockbroker

Normally, there are several stockbrokers. Choose a licensed one. To add to this, it’s better if you choose one that provides online services. This will help you pursue your trading activities at ease.

 8. Invest in a sector you have a clear passion for.

This means that you will actively be checking on the rates. Also, it gives you a clear understanding of the trading caps. You also need to constantly be updated on new ventures undertaken by the company you wish to buy stocks in.

Bonus:

Would you like to buy stock in the Kenyan market? The Nairobi Stocks Exchange is the leading securities exchange in East Africa. To buy online stocks, you need to create an online account, identify the stocks you would like to purchase then find a RELIABLE and trusted online broker that is licensed. Here is a list of trusted online brokers that are licensed;

  • AIB Capital
  • ApexAfrica Capital
  • Dyer & Blair
  • Equity Investment Bank
  • Faida Investment Bank
  • Genghis Capital
  • Kestrel Capital
  • Kingdom Securities
  • NIC Securities
  • SBG Securities
  • Sterling Capital Limited
  • Suntra Investment Bank

Feel free to make decisions that suit your needs.

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