Investor Education

1. Guide to Trading on the DSM
2. To Get Started
3. Buying & Selling Listed Shares
4. Completing a Transaction
5. Monitoring your Investment Portfolio
6. Advantage of Owning stocks
7. Disadvantage of Owning Shares
8. Cost of Trading shares

1. Guide to Trading on the DSM:

Understanding the basics is essential when it comes to trading on the Doha Securities Market (DSM). Similarly, investing wisely on the DSM requires information and education. The guide below will aid the investor on the fundamentals of trading shares on the DSM. We ask that you to take a minute and select the topic of choice below to get started. If you want to familiarize yourself with stock market terminologies, we recommend checking our Glossary area.

2. To Get Started:

Without a stockbroker, you are not in a position to trade on the Doha Securities Market (DSM). Your stockbroker is an essential player, who will act as the intermediary for all of your trading and brokerage transactions. At the present, the DSM has licensed seven (7) stockbroker firms. To begin trading on the DSM, it is mandatory for a potential investor, whether an individual (local or foreign), a company or any other establishments, to get registered with the bourse. For complete instructions on how to register, click on Trading Procedures. Once you are registered with the DSM as an investor, or in other words, you have obtained an Investor Card bearing an “NIN” (National Identification Number), you are eligible to begin buying and selling listed shares.

3. Buying & Selling Listed Shares:

Once you are registered with the bourse and have chosen a stockbroker, you are in your way of trading. It is crucial, once you decided to sell or buy securities, to provide your broker with precise and complete instructions in order for your broker to complete your transaction properly and in a timely manner. When given buying order(s) to your stockbroker, you must specify the following requirements:

The approximate time duration of your order application. (validity of purchase orders are printed on the application)
The name of the company in which you want to invest in.
The price per share you are willing to bid.
The number of shares you wish to buy.

Similarly, when given a selling order to your stockbroker, you must specify the following requirements:

The approximate time duration of your order application (validity of sale orders are printed on the application)
The name of the company in which you want to sell
The price per share at which you wish to make a sale
The number of shares you wish to sell

* In all of your brokerage dealings, make sure your application is signed and stamped (with date and time) by your brokerage firm. It is highly recommended to obtain/retain a copy of your order application for your own records to ensure your rights of priority upon order execution is preserved.

The Validity of purchase and sale orders:

There are (3) types of buy/sale orders which you can choose from. Select the type you would like to opt for:

Valid (good) for a day
Valid (good) for a week
Valid (good) for a month

4. Completing a Transaction:

Once your transaction (buying/selling) is complete, your broker will send you a notification on the date of execution. You can obtain a Statement of Account which reflects all of your brokerage activities. Your broker firm will request payment for any share dealings before order execution. If you are selling shares, your broker will issue a check after the date of sale. Please contact your brokerage firms for additional details.

5. Monitoring your Investment Portfolio:

As an investor, you can monitor the performance of your investment portfolio regularly. The DSM offers several methods for monitoring the performance of your investment. You can stay informed about the status of your investment either in real time by viewing real prices on the DSM website or by obtaining delayed information utilizing the below options:

Access stock prices movements via computer terminals at any time.
Obtain share prices on local daily newspapers
View our daily, weekly, monthly and yearly bulletin and publication published on our website
Review the listed company’s quarterly, semi-annual and yearly annual reports
Monitor the DSM 20 Index in a regular basis to reflect market performance and trends.

6. Advantage of Owning stocks:

Stocks (also referred to as equity or shares) represent ownership in a company with specific rights, including the ability to “share” in the profits of the company. Some of the advantages of owning stocks are:

Income flow (Cash + Stock Dividends)
Long-Term Growth (Price Appreciation Potential)
Liquidity (Can be converted into Cash)
Low Transaction Costs (Low Cost Compared to other Investment vehicles)
No Income Taxes
Risk can be diversified (allocation of stocks among different stock/industry classes can reduce risks.

7. Disadvantage of Owning Shares:

Every type of investment vehicles carries with it a degree of risk. The degree of risk differs from investment to investment. Risk involve in investing in stocks can be classified into two main categories:

Systematic Risk
Unsystematic Risk

8. Cost of Trading shares:

The cost of trading in securities includes brokerage commission and fees for services. For a complete list of fees, click on Products and Services & contact your stockbroker firm for details.