First of all, just forget what you have studied in school or anywhere else. Let’s start this freshly. When you googled investing the definition given is. “put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.”
In my word investing means is a way of getting financial freedom in the future. Define investing in your own terms. identify the reason for investing in your terms. everything should be in your terms. Go to google and find out about the popular investors, no problem at all but in the end, the reason for investing must be your own creation.
I don’t wanna take this article long, let’s finish it under heading short and sweet.
Currently, we have 291 public limited companies registered in CSE(Colombo stock exchange). These are only a number of companies you can buy shares through the Sri Lanka stock market(CSE).
What is CSE?
CSE is the place where the companies get listed to distribute their shares to the public. if it has not been listed I cannot sell shares to the general public. Shareholders (The person who bought a share from a company) will not involve in day to day activities of the business so to keep their investment safe CSE establishes some rules to the companies.
How to start?
So let’s say you are waiting to save 100000 and star investing after that, Investing does not work that way Start investing a small amount every month, nearly 10% or 20% of your monthly earning. if it is not possible you can start even with small amounts like 2000 or 1000. You cant directly go to CSE and give your 1000 rs and say ‘ i want this much shares in this company’. You need to find a brokerage firm. They are the ones who stay as a middleman between us and CSE.
Normally when we start investing we will know nothing about it, but they will guide us through the process. A fee will be charged for the service provided, normally 1.12% of your investment will be charged as a fee. this percentage will be deducted whenever you buy or sell your share not while holding. I will be leaving the link below to a number of brokerage firms in Sri Lanka. Choose a suitable one for you.
I gave you the basic idea of starting, but this is not all. What I thought was, Practical learning is the best way of learning. That is how I learned and learning these kinds of stuff. I prefer you get in the field and learn.
Brokerage firms – https://www.cse.lk/home/members
KNOWLEDGE IS WEALTH