Understanding the basics is important when it comes to trading on the Qatar Stock Exchange (QSE). Equally so, investing wisely on QSE requires information and education. The guide below will aid the investor on the essentials of trading shares on QSE. To get started: Without a stockbroker, you are not able to trade on the Qatar Stock Exchange . Your stockbroker is an essential player, who will act as the intermediary for all of your trading and brokerage transactions. At present, QSE has licensed eleven (11) stockbroker firms. To begin trading on QSE, it is mandatory for a potential investor, whether an individual (local or foreign), a company or any other establishment, to be registered with the exchange. For complete instructions on how to register, click on Trading Procedures. Once you are registered with Qatar Central Securities Depository as an investor, in other words you have obtained an Investor Card bearing a “NIN” (National Identification Number), and open account with authorized broker you are eligible to begin buying and selling listed shares. Buying & selling listed shares: Please refer to the corresponding section at main site. The validity of buy and sell orders: There are three types of buy/sell orders which you can choose from. Select the type you would like to opt for:
Day Order (GTD) Good Till Cancel (GTC) Good Till Date (GTD) Valid for Auction (VFA) Valid for Closing (VFC) Good Till Time Order (GTT) 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. Monitoring your investment portfolio: As an investor, you can monitor the performance of your investment portfolio regularly. QSE offers several ways for monitoring the performance of your investment. You can stay informed either in real time, by viewing real prices on the QSE website, or by obtaining delayed information utilizing the options below :
Access stock prices movements via computer terminals at any time. Obtain share prices in local daily newspapers View our daily, weekly, monthly and yearly bulletin and publications on our website Review the listed company’s quarterly, semi-annual and yearly annual reports Monitor the QSE Index on a regular basis as the Index reflects the overall market performance. 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 your portfolio among different stocks and/or sectors will reduce the overall risk of your portfolio) Disadvantage of owning stocks: Every type of investment vehicle carries a certain degree of risk. The degree of risk differs from investment to investment. The risk involved in investing in stocks can be classified into two main categories:
Systematic risk (market related risk or undiversifiable risk) Unsystematic risk (specific risk or diversifiable risk) Cost of trading shares:
The cost of trading in securities includes brokerage commission and fees for services. For a complete list of fees, contact your stockbroker firm for details.