Stock Market Basics
Investing in the stock market is considered one of the best ways to achieve high returns that outpace inflation over time and other asset classes such as bonds, commodities or even real estate.
In the stock market, investors make money in two ways; by trading and by holding.
Trading; There are those investors who buy and sell shares regularly while taking advantage of small price ticks.
Holding; There are those investors who buy and hold and to let their stocks appreciate in value over time. In most cases, the companies whose stock they buy reward them further with regular payments of dividends.
The Stock Market in Kenya
The Kenyan stock market, commonly known as the Nairobi Stock Exchange, is one of the largest and most active stock markets in Africa. It was formed in 1954 as a voluntary association of stockbrokers.
In 2006, the NSE implemented live trading on its own automated trading systems trading equities. This meant that brokers and investment banks no longer required a physical presence on the trading floor since they would be able to trade through terminals in their offices linked to the NSE trading engine.
The Nairobi Stock Exchange has more than 60 listed companies and trading hours commence from 9.00am and close at 3.00pm each working day.
Tracking the Stock Market in Kenya
Traders and investors want an easy way to know when stocks hit certain prices so they can enter that particular market and buy shares. Others want to monitor activity constantly throughout every day, in real time, with updates to every price fluctuations.
Today’s technology presents real-time information, which effectively bridges the earlier divide between professional investors like (banks & stockbrokers) and retail investors.
Hisa App, currently in public beta gives investors and potential investors free information on the real-time prices of stocks listed at the Nairobi Securities Exchange. The Hisa app is available on Android and Apple’s IOS and carries financial news stories from Kenyan Wallstreet, Trading Room and other publications will be included in due course.
With Hisa App, investors can track when a stock fluctuates in value in real time unlike the daily newspapers that report on the prior trading session with stock market closing prices.
Hisa App also allows users to track each stock’s volumes on a daily basis on the NSE. Volume is basically the number of shares bought and sold through an exchange over a given period. Traders often track volume levels to help them decide when to buy and sell stocks, with the aim of taking a position from a position they already hold.
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Remember that when you buy a stock, you are buying a piece of a business!