| # | Stage | Explanation |
|---|---|---|
| 1 | Order entry | The order is entered specifying
Security name |
| 2 | Order validation | For sales, the investor’s holdings are verified by the broker and the securities are placed on hold, preventing any other transactions, while for purchases, the investor is confirmed to have adequate cash to fund the order. |
| 3 | Trade execution | The order is placed on the stock exchange when the matching price conditions allow. When a counterparty is found, the trade is agreed on price and quantity. |
| 4 | Trade confirmation | A contract note is sent to the investor, informing them of the trade and confirming the terms. |
| 5 | Trade settlement | Settlement occurs after 3 business days where the buying and selling brokers exchange the funds and securities |
| 6 | Reconciliation | For sales, the broker ensures receipt of the funds from the buyer, while for purchases the broker ensures receipt of the securities in the appropriate client’s name |
| 7 | Remittances | The broker remits sales proceeds or surplus cash for purchases to the investor |
You can buy shares on the Ghana Stock Exchange by calling a licensed stockbroker such as IC Securities. If you are already a client of IC Securities, you can log into Tradelive, an electronic trading platform accessible by web (online) or through the Mobile Money platform (USSD). On the internet, go to https://wealth.ic.africa or on the MoMo platform select 5 for Financial Services, followed by 6 for Tradelive.
Yes, you can buy or sell shares on this platform if you are an existing client of IC Securities (Ghana) Limited and you have a share trading account with the CSD. If you are not sure about this, please email clientservice@icsecurities.com or call 0308250051. On the online platform click on the “Buy/Sell” button after you log in, and select the company of your choice. On the USSD platform, once logged into Tradelive, select option 2 for “Buy” or option 3 for “Sell” and follow the prompts.
Investors who want to buy an ownership stake in companies that are listed on the Ghana Stock Exchange can open a share trading account with the Central Securities Depository (CSD) and a broker of their choice. They can then purchase shares of listed companies on the Ghana Stock exchange and sell the shares that they already own. After submitting an order to buy or sell shares to their broker, the broker assists the investor to find another party who meets the requirements of the order. Prices of shares change regularly and are determined primarily by demand and supply as well as information about the company. Share prices are published daily by the Ghana Stock Exchange.
Yes, through Tradelive you can see shares that you own even if you did not buy your shares through MoMo, at IPO or even if you own shares in other companies and not MTN. Tradelive works for you so long as IC Securities (Ghana) Limited is your broker.
Yes, through Tradelive you can see shares that you own even if you did not buy your shares through MoMo, at IPO or even if you own shares in other companies and not MTN. Tradelive works for you so long as IC Securities (Ghana) Limited is your broker.
For USSD go to option 1: “View share balance” gives you a view of the different shares you own and their current value. On the web your share balance is shown on the first page after you log in.
This platform shows the share holdings for individuals who are clients of IC Securities (Ghana) Limited and have a share trading account with the CSD. Please email clientservice@icsecurities.com or call 0308250051.
Your shares are kept with the Central Securities Depository (CSD) in an account bearing your name.
The time it takes to execute an order to buy or sell shares depends on the activity on the market and if there are other investors interested in meeting your order. Your order placed on this platform is valid for 30 days and will be processed to the market each day within that period. If the time runs out before your order is executed, you can renew the order by selecting option 4 on the MoMo/USSD platform: “Renew/Cancel order” and following the steps to renew. On the web platform, you can simply resubmit your order.
The price at which you are able to trade your shares depends on the current level of the market and the number of shares you are trying to trade. If your order is at ‘market price’ that price is determined by the price at which the latest trades in your shares were executed at the stock exchange. If the number of shares you are trying to sell meets the Ghana Stock Exchange minimum to allow you to set your own price, the price you request will be the price sought for your trade.
You will be notified by SMS on the day your trade is executed successfully with details on how many shares were traded and the price. If you placed your order online or we have an email address for you, you will also receive a Contract Note by email.
Payment will be made to your mobile money wallet after settlement, which occurs 3 business days after the date of the trade. If you have a bank account on file with the CSD, payment will be made there.
Order entered by USSD: If you cancel an order to sell you shares you will receive a notification by SMS confirming the cancelation. If you cancel an order to buy shares you will receive a confirmation by SMS and your funds will be returned to your mobile money wallet the same day. Order placed online: If you cancel an order to sell you shares you will receive a notification by email confirming the cancelation. If you cancel an order to buy shares you will receive a confirmation by email and we will transfer your funds back to you upon your request.
If after placing your order to buy shares, you don’t automatically receive a Mobile Money prompt to approve the transaction to transfer funds to the ICS GHS Equities Trust Account 3, please check “My Approvals” by dialing Mobile Money option 6 for “My Wallet” followed by option 3 for “My Approvals”.
You will receive an SMS if your order expires and your funds will be returned to your Mobile Money wallet if the order was placed on the USSD/MoMo platform. Your order may expire as a result of reaching the end of its 30-day validity period, or because payment was not authorized within 10 minutes of placing a buy order, or because the market has moved away from the price at which an order was placed, such that it can no longer be executed. For example, if you placed an order to buy shares and paid GHS 50 for it, but a week later the value of the order has increased to GHS 52, your order will be cancelled and your funds returned to you.
To open a new share trading account, you will need valid national ID (Driver’s License, Voter’s ID, Passport, Ghana/Ecowas ID Card), a passport-sized picture and to fill account opening forms for the CSD and IC Securities. Please email clientservice@icsecurities.com or call 0308250051 for further assistance
When you submit your order through the USSD platform it is sent directly to the Ghana Stock Exchange which operates from 10am to 3pm GMT on weekdays. The stock markets are not open outside of these hours so you will receive an error message if you try to trade. You can submit your order at any time online, but it will be held and can only be sent to trade when the market opens.
No – there is no limit to how many buy orders you can submit, provided you have provided the funds to support them. You may only submit orders to sell the number of shares you currently own. However, if you are trading through your MoMo wallet on USSD, the transaction limit is determined by the limit on your MoMo account.
When you put in an order to trade on the Ghana Stock Exchange, your order is automatically and efficiently matched against another order that meets your criteria so you cannot choose who you trade with.
There are statutory levies and a brokerage commission associated with each transaction, based on the number of shares traded. The fees are calculated as a percentage of the value of the transaction and the breakdown for transactions through IC Securities is provided below:
| Number of shares traded | Brokerage commission (%) | Statutory Levies | (%) Total Cost (%) |
|---|---|---|---|
| Up to 500 | 1.80% | 1.70% | 2.50% |
| 501 – 5,000 | 1.55% | 1.70% | 2.25% |
| 5,001 – 50,000 | 1.30% | 1.70% | 2.00% |
| 50,001 or more | 1.05% | 1.70% | 1.75% |
Share prices are determined by supply and demand. All other things remaining the same, the price of a share will go up if buy orders for the share exceed orders to sell. Similarly, a share’s price is most likely to fall if sell orders exceed orders to buy it. The demand for a share normally changes in response to changing expectations of the investing public. Other factors behind demand and supply that affect share prices are interest rates, expectations of the market, the economy, performance of the listed company and major news from the listed company.
Although there are many companies listed on the Ghana Stock Exchange this platform gives you access to the 7 most traded stocks. If a stock you’re interested in trading in is not available, please log into Tradelive online (https://wealth.ic.africa), email clientservice@icsecurities.com or call 0308250051 for assistance.
You will see your share balance immediately after logging in online, or you can select USSD option 1: “View share balance” for a mini statement of the current valuation of your shares. If you require a printed statement, please email the request to clientservice@icsecurities.com or call 0308250051.
For additional information please email clientservice@icsecurities.com or call 0308250051.
Securities are standardised certificates which are suitable for mass trading, as well as rights not represented by a certificate but with similar features. They include equities, bonds, units of mutual funds and derivatives. They are offered to the public in a standardised form and denomination.
Securities entail financial risks. There is no substitute for the product descriptions provided by issuers and securities dealers so those materials should be read carefully. If you have any further questions, consult your securities dealer. General risks associated with securities trading are outlined below.
Credit risk is determined by the borrower’s credit capacity and credit worthiness and is therefore a measure of the borrower’s solvency. The issuer risk is the danger of the insolvency of the borrower ie. the borrower’s potential inability to fulfil obligations in a timely or complete manner such as dividend payments, interest rate payments, repayments, etc. As a rule, the higher the credit risk, the higher the interest rate (risk premium) paid on a financial instrument. A deterioration of solvency or the complete insolvency of the borrower entails at least a partial loss of the invested capital.
Inflation may deteriorate the monetary value of an investment. The purchasing power of the invested capital decreases when the inflation rate is higher than the return generated by the securities.
Liquidity risk is the risk that you will not always be able to obtain an appropriate price for your investment when you sell it. When certain securities are impossible to sell, or can only be sold with difficulty and at a sharply reduced price, the market is said to be illiquid. Illiquidity risk occurs especially with shares in un-listed or poorly capitalised companies, investments with sales restrictions, and certain structured products.
A settlement risk occurs when you have to pay the purchase price of a security in advance but do not actually receive the security until later. In this event, the risk is that you will pay the purchase price and receive the securities late or even not at all. Conversely, when you are obliged to deliver securities that you have sold, you may not simultaneously receive the purchase price from the buyer.
A country risk can arise if a country restricts securities trading. There is also a risk that political or foreign exchange measures may prevent or aggravate the realization of investments or the payment of interest and dividends. Problems may also occur when settling orders. In the case of foreign currency transaction, such measures may also entail that the foreign currency is no longer freely convertible.
Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock.
Bid price or Bid: The highest price a buyer will pay for a security.
Brokerage house: A firm in the business of buying and selling securities for its own account or on behalf of its customers and which is appropriately licensed by the Ghana Stock Exchange and the Securities and Exchange Commission to do so.
Central Securities Depository (CSD): The CSD was set up with the support of the Bank of Ghana and the Ghana Stock Exchange as an automated securities depository and clearing and settlement system in Ghana. The Central Securities Depository maintains electronic securities accounts for investors, promoting investment activities in the country's financial market through the elimination of risks such as forfeiture, theft, mutilation etc that are associated with the issuance of paper based securities.
Common Stock: The common shares usually entitle the shareholders to vote at shareholders’ meetings. The common shares have a discretionary dividend.
Dividend: A portion of a company's profit paid to common and preferred shareholders.
Dividend yield: A measure of income on an equity investment represented by annual dividends divided by current stock price. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%.
Equity: Ownership interest in a firm.
Exchange: A marketplace in which shares, bonds, commodities and other securities are traded.
Fixed Income: Assets that pay a fixed amount per unit or have interest rates attached to them, such as bonds and bills.
Ghana Stock Exchange: The Ghana Stock Exchange (GSE) is the principal stock exchange of Ghana where shares in listed companies are traded by Authorised Dealing Officers (ADOs). Trading on the Ghana Stock Exchange takes place every working day of the week from 10.00am to 3.00pm. Trading is open to the general public.
Good ‘Til Cancelled (GTC): An order that an investor may place to buy or sell a security that remains active until either the order is filled or the investor cancels it. Brokerages will typically limit the maximum time you can keep a GTC order open (active), after which it expires.
Initial Public Offering (IPO): offering of securities of a company or a similar corporation to the public for the first time, after which the securities are listed on an exchange for trading.
Investment: Generally, every activity that is done today but which yields profit at a later date can be described as an investment. Investment involves postponing your consumption today in order to put your savings to work.
Investor: An investor is anyone who decides to put part of his/her funds in an investment for future benefit.
Limit Order: A limit order is a type of order to purchase or sell a security at a specified price or better.
Listed Company: A company is said to be listed when its securities are approved to be bought and sold by investors on the Stock Exchange. There are certain requirements that a company must meet in order to qualify for listing on the Exchange and maintain this status over time. These requirements are stipulated in the GSE Rules Book.
Market Price: The last reported price at which a security was traded on an exchange.
Odd-lot: A trading order for less than 100 shares of stock.
Over the counter (OTC): A decentralized market (as opposed to an exchange market) which is not located in any particular place. The market is for securities not listed on a stock or derivatives exchange.
Preferred Stock: Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders.
Primary Market: The primary market is where securities are created. In the primary market, institutions sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).
Regulator: A body or organisation that sets rules, supervises and measures compliance in an industry.
Risk: Degree of uncertainty of return on an asset.
Round-lot: A trading order typically of 100 shares of a stock or some multiple of 100.
Secondary Market: The secondary market is where investors buy and sell existing securities they already own.
Securities and Exchange Commission (SEC): The Securities and Exchange Commission is established by the Securities Industry Act, 2016 (Act 929) (‘the Act’) with the object to regulate and promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.
Security: Piece of paper that proves ownership of stocks, bonds, and other investments.
Settlement: When payment is made for a trade and the securities must be delivered to the buyer.
Stockbroker: A stockbroker is a professional who acts as the intermediary between investors who wish to buy shares/bonds and those investors who wish to sell securities. The stockbroker therefore eliminates the need for investors to search for trading partners. The stockbroker also gives advice to investors about which securities to buy and sell. Stockbrokers play a vital role in our market because all investment on the Ghana Stock Exchange can only be done through a stockbroker. To qualify as a broker, a person must among other things complete the Securities Courses offered by the Ghana Stock Exchange, pass the relevant examinations in them, be in the employment of a brokerage company for at least six months and also be licensed also by the Securities & Exchange Commission.
Ticker: An abbreviation assigned to a security for trading purposes (ex: MTNGH or GCB)
Trade: A transaction involving one party buying a security from another party. Settlement occurs 1-5 business days later depending on the security and the rules of the exchange.