- This unit deals on the Stock Exchange for both clients and our proprietary accounts. We purchase and sell shares (stocks) of listed companies for clients on the Ghana Stock Exchange (GSE)
- Stocks/equities are mostly for clients with long term orientation and with the patience to wait out the short term price volatilities. Equities most often rewards investors/shareholders with capital appreciation and dividends.
- It offers the best of returns over a longer period of time compared to fixed income investments
- Clients are charged a fee/commission for either the purchase or sale of shares; maximum of 2.5% of traded value.
Gold Coast has been involved in the listing of some equities on the Market
- Gold Coast was the only local broker for the global IPO of AGC shares in the early 1990s.
- We were supporting brokers for the listing of GOIL on the stock market in 2007.
- We were the lead manager and sponsoring broker for the listing of HORDS Limited on the Ghana Alternative Exchange, GAX in 2015.
Listed Equities / Stocks
Definition: Stocks signify residual ownership of an organization, so a holder of any company’s shares is a part owner of that company and therefore has voting rights at shareholder meetings. Shares are one of several means by which a company can raise capital.
Target Customers: Listed Equities, or stocks, are primarily purchased by people with high risk-tolerance and a good understanding of how the stock market operates. These customers are comfortable losing a bit of money on occasion and are typically interested in long-term overall gains.
- Volatility: prices fluctuate frequently.
- Variable Return: earnings depend on the buying and selling price of the stock, which can change over time.
- Higher Risk: possibility of losing the investment.
- High Earning Potential: Equities have the potential to yield much higher returns than bonds and government instruments such as Treasury Bills.
- Dividend Payouts: Companies at the end of their financial year payout part of their profits to shareholders as dividends.
- Personal Service: Gold Coast’s dedicated brokers are available to make trades upon request.
- Research information: Gold Coast provides research information to clients weekly to keep them informed of the latest happenings on the Ghana Stock Exchange.
- Risk Management: The basic risk management tool is diversification of portfolio. One needs time to monitor the performance of his or her investment in order to manage risk, fund managers, such as Gold Coast, are helpful in this direction.
Mitigating Risk: Stocks can be extremely risky for a passive investor. Minimizing risk with this type of investment is possible through three strategies:
- Monitoring: Pay close attention to the companies you hold shares in. Stock prices can change when there are changes in the company or the industry in which it operates. If you are a stockholder in any company, it would be wise to read current articles on the company to anticipate changes in the stock price.
- Diversification: It has been mathematically proven that choosing a wide variety of stocks in different industries will lower the risk of your portfolio. For this reason, it is always recommended to spread your investments across many companies. Mutual Funds and Unit Trusts such as Gold Fund are a good way to invest in a wide variety in stocks; these collective investment schemes pool together people’s money
Stock Market Activities
Gold Coast has been involved in the listing of some equities on the Market. Gold Coast was the only local broker for the global IPO of AGC shares in the early 1990s. We were supporting brokers for the listing of GOIL on the stock market in 2007. We were the lead manager and sponsoring broker for the listing of HORDS Limited on the Ghana Alternative Exchange, GAX in 2015.