FAQ

What is the stock Exchange?

The stock exchange is where companies seeking capital for development (issuers of shares and bonds) meet with capital holders (investors with financing capacity, who become holders of market products: shares and bonds).

The stock exchange includes two compartments:

Primary Market

Companies issue their securities for the first time on the primary market.

Institutional investors subscribe to IPOs, capital increases (shares), or bond issuances (bonds/loans). All public companies issue shares, but not all are listed on the stock exchange; only the largest or most attractive ones are.

The Secondary Market

These same securities are then offered to savers on the secondary market, which can be considered the used market. The issuer no longer intervenes.

What is the market?

The market is the course of a trading session.

During this session, the price of a security (share, bond) is determined based on the confrontation of the best sale offers and the best purchase offers.

What is a Share?

A Share is a title of ownership. A share is issued by a capital company that needs financing. Holding a share means holding part of the company's capital. It grants rights, including the right to vote at shareholder meetings and the right to receive remuneration: dividends, paid annually based on the company's results.

What is a bond?

A bond is a debt security. It is a fraction of a loan contracted by a large company or the state from investors on financial markets. Holding a bond means lending money to a company or a state. The investor who holds a bond receives annual interest, called "coupons." At the end of the loan term, the company or state repays the principal. A bond does not grant rights like voting, unlike a share.

What are the Different Sectors on the Stock Exchange?

On the stock exchange, companies from various sectors are listed:

Agriculture
Distribution
Finances
Industry
Public services (Electricity, Water, Telecommunications, etc.)
Transport
Others

In terms of bonds, there are :

government bonds
private bonds
regional obligations.

What is the role of brokers: Securities and Intermediation Companies (SGI)?

SGIs are exclusively authorized to perform the activities of negotiator-compensators of listed securities on behalf of third parties. Consequently, they are authorized to receive and hold public funds in the context of this activity.

All transactions involving securities listed on the BRVM are carried out through an SGI, except in cases of derogation granted by the BRVM.

SGIs are authorized to perform the activity of custodian of securities. However, issuers may hold their own securities on behalf of third parties.

What is Stock Exchange Brokerage?

It is one of the main activities of stockbrokers.

At the BRVM, SGI companies transact daily on securities. They proceed through the market to buy and sell securities (shares and bonds) on behalf of their investors and for their own account.

Why Invest in the Stock Exchange?

Investing in the stock exchange is one of the best ways to accumulate wealth. The stock exchange is the financial market that offers the highest returns in the long term. This is because companies invest using funds raised on the stock exchange and thus create wealth. This wealth naturally returns to the company owners, the shareholders.

Moreover, investing in the stock exchange is known to be discreet, not only due to the confidentiality commitment of SGIs but also because of the dematerialized nature of securities

How to do it?

To become a good stock exchange investor, follow these recommendations:

Conduct Research, which includes:

Read economic news
Consult BRVM ( brvm.org ) for information on prices, market trends, and financial information of listed companies
Choose your financial intermediary and be informed about:
- Conditions and fees for opening a securities account
- Costs of stock exchange operations
- Advice on products to acquire (depending on the chosen management)

Under the advice of the SGI, the client must opt for one of the following management options:

Self-Management: You have the freedom to manage your portfolio yourself. You make all decisions regarding buying, selling, subscribing, attributing, exchanging, negotiating rights, responding to public offers to buy or sell, subscribing to shares or units of UCITS on your account. We will execute your instructions on the market in your name.

Management under Mandate : The mandate aims to ensure the best interests of the client. For the management of your assets, the manager will have the most extensive administrative powers. They can perform all operations of buying, selling, subscribing, attributing, exchanging, negotiating rights, responding to public offers to buy or sell, subscribing to shares or units of UCITS on your account in your name.