Irwan’s

I will attempt to make a series of investment workshop that will focus on a line of investment products that are available in Malaysia. This series will take around 6-7 days to finish and each post will be publish around 9-12 every free night. I hope this series will provide a useful yet short and precise readings.

Other posts in this series:

Anatomy of Investment Series 1 – Equities (this post)

Anatomy of Investment Series 2- Unit Trust

Anatomy of Investment Series 3- Options

Today, we will learn together more about Equities:

When you buy stocks or ordinary shares, you own part of the company and have the right to vote at general meetings. Each share is a small stake in a company and you can buy small or large number of lots depending on the amount of money you have.

As a shareholder, you can benefit from the profits earned by the company
in the form of dividends paid to you, and also from the growth in the value of the company.

But why do companies issue shares? The company benefits by raising funds to operate and expand its business without having to borrow the money from other sources such as banks.

You should be aware that there are risks associated with buying shares. When the company performs poorly, its shares may fall in value and you may not receive any dividend. There are other factors such as the performance of the stock market as a whole and the country’s economic situation that may affect the price of your shares. It is also possible that you may lose your entire investment if the company goes out of business. There are also shares that are difficult to sell if the demand for them is lacking. It is therefore important that you select the right companies to invest in.

My Point of View:

Equities are still a mystery to me. I haven’t had any participation in trading equities. So I cannot comment more on this kind of investment. You need a Central Depository System (CDS) to start trading equities. If I’m not wrong, the required age to open a CDS account is 21. So it’s only next year that I can open a CDS. After you have a CDS account, you either can buy/sell equities online(Maybank) or through a licensed remisier.

When you want to invest in companies, make sure you know what the company is about, how its modus operandi and so on. You need to ask yourself whether this company still have more headroom to grow, whether the company’s suit the future strategy of our goverment. If you can’t answer these questions, do more of your homework before your start investing…

This end today’s post. Stay tune for next posting tomorow. See ya