First Play Then Trade – JSE Launches Virtual Trading Game
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In this article we look at common but often misunderstood financial information — the share pages that are found in the business sections of many national newspapers. These pages give vital information on companies listed on the JSE as well as many other investments including Kruger Rands, Exchange Traded Funds, preference shares and unit trusts. Categories The share pages are divided into nine major sectors, all of which have further subheadings. Listed companies are classified into sectors and sub-sectors according to their business activities as a globally accepted system.
Virtual share trading jse sectors and sub-sectors make it fairly straightforward to find any company. For example, you would find company Afrisam listed in the Construction and Building Materials sub sector of the Basic Industries category.
This table contains standardised symbols and what they stand for. Name simply refers to abbreviated name of the company or investment product listed on the page. To save space, companies are only allowed seven letters for their name. Along with the abbreviated name, some share pages also include a virtual share trading jse letter abbreviation for the company. Regular traders become so accustomed to using these abbreviations that they may refer to these instead of the full name of the company.
Shares are always priced in cents in the share pages. If you are going to buy a share and it is currently trading near the top of its 52 week range, then you need to be confident of why you think the stock will go up further from here. DM stands for Daily Move which represents the difference in the closing price of a stock from one trading day to the next.
If the price of the stock increases this will be indicated by a plus sign before the figure and virtual share trading jse a minus sign signifies a downward movement in price. Some papers include a move in cents or a percentage while others show both.
DY stands for Dividend Yield which is a financial ratio that shows how much a company pays out in dividends virtual share trading jse year virtual share trading jse to its share price. Without considering any capital gains that you would receive when selling your stock, the dividend yield is the return on investment for a stock. It is calculated by dividing the annual dividends per share by the price per share.
Dividend yield is used as a measurement of the cash flow you receive back for each rand invested. Investors depending on a steady stream of income from their investment portfolio would look at this figure in order to select investments that pay high, stable dividends.
PE stands for the price-to-earnings ratio of a stock. This is a measure of price paid for a share relative to the annual net income of profit earned by the company per share.
This ratio is used for valuation purposes: These so-called units are actually financial years of the company concerned and can be interpreted as the number of years of earning to pay back the purchase price. You will see in the paper that under some columns there will be a dash rather than a number — this is because the share virtual share trading jse not trade at all on that particular day.
Studying daily volume over a period of time will give an investor an idea of the trading activity or liquidity of a share — virtual share trading jse is useful to know as liquid shares are easily sold. S stands for suspended which means that trading on the share or investment product has been suspended.
A halt in trading activity for an extended period of time normally occurs when there is a lack of financial information on the share. Once the JSE suspends a share, shares of that company cannot be traded on the market until the suspension is lifted or lapses.
The exact amount of time for the suspension is determined on a case-by-case basis. To invest on the virtual share trading jse market, one needs to understand how indices work. In an index, companies with common virtual share trading jse are grouped together and index can be seen as a barometer for that group, whether together overall, they are up or down.
At a glance, an index gives investors a good idea of how an industry has performed or for example how the top 40 companies listed on the JSE have performed. Before you actually put any money into the market give virtual trading a go. This is an educational programme that teaches the youth the fundamentals of investment strategy.
There are great prizes for winning teams including the opportunity to visit a stock exchange in another part of the world. This year marks the 40th anniversary of the challenge. You will be credited with virtual cash and therefore, all profits and losses emanating from your trading activity will remain virtual and therefore you will incur no liability but also will make no real money.