Buying Jamaican stocks can seem like a daunting task, but the truth is it’s not as difficult as it seems.
Before we go any further, we first need to know what investing is. Simply put, investing is allocating resources, usually money, with the expectation of generating profit at a later date.
The most common form of investing and the easiest to get into is, investing in the stock market. The average person knows a thing or two about the stock market and/or supports the companies on the exchange in one way or another.
Every Jamaican should be invested in the stock market. We should all be buying Jamaican stocks. It can create the truest form of passive income if done correctly.
Buying companies on the Jamaica Stock Exchange is a very easy process. You just need a few things, a brokerage account, capital, and access to a device with an internet connection.
There are various brokers that offer this service, the two I would recommend are JMMB Investments and Sagicor Investment. They both offer quality service and have the most affordable transaction fees in the industry.
The process for opening the account might be slightly different for each broker, but can be completed in one day. Each account holder is given a unique identifier known as a JCSD number.
The Jamaica Stock Exchange has 4 types of markets, they are the Main Market, the Junior Market, the USD Market, and the Bond Market.
There are many listings on the exchange with new listings popping up from time to time. One of the largest listings was the listing of renewable energy company Wigton Wind Farm Limited.
This company IPO’ed at fifty cents Jamaican dollar (0.50 JMD) on April 17, 2019. Literally, every Jamaican could get a piece of this company. Wigton Wind Farms Limited is currently trading at a price of sixty-five cents Jamaica dollars (0.65 JMD) at the close of the market on Friday, March 19, 2021.
Why you should invest in the Jamaican market
Jamaica is ripe for investments and is currently undergoing a transformation to become a first-world country by 2030.
It’s hands down the investment and cultural hub of the Caribbean. I don’t think we need to say anything more than that to see the value of investing in Jamaica.
Historically, a stock market grows with the economy of the country it’s in. Jamaica is no exception, and by that logic, we are seeing many bargains currently.
You can purchase a share of a company for pennies on the dollar unlike in other developed nations such as the United States.
By dollar-cost averaging, you will see significant gains over the long term as you grow with the market. You will also receive lots of dividends throughout your investing lifetime.
Investing in great Jamaican companies for the long-term will enable you to build generational wealth that will be passed on to the next generation.
Creating and keeping wealth in the family is very important especially if you came from a poor background.
