Outlining some of the benefits of the Stock Market, GASCI
Board Member, and Director of the GNCB Trust
, Mr. Hewley Nelson
, explained that it provides an opportunity for the small man to get involved in the holding of shares, while also providing a cheap source of financing for companies.He
anticipates that there are a number of situations could develop from the stock exchange - for example, having a capital market whereby new companies could now come and ,float, shares so as to raise their share capital.Nelson
said that GASCI
is hoping somewhere along the line, to create an avenue for Treasury Bills and Debentures will be counted to take care of emergency financial obligations rather than having to wait for shares to mature..
,It is a cheap process of financing for any company, as against borrowing from the Commercial Banks
reasoned, adding that by issuing new shares through the stock exchange, businesses will raise working capital through subscription.
This process effectively cuts out having to approach a Commercial Bank to negotiate a loan, and having to show the required collateral.The added benefit of buying shares is that, once a customer buys shares from a company he becomes part owner of that company, and the shares bought, automatically entitle him to dividends or some of the assets of that company.
If after, say two years, the customer decides on selling his
shares, this may be done through any of the three named Brokers who will put it on the market and have it sold to whoever wishes to buy them, Nelson
And further explaining the dynamics of the Stock Exchange, Nelson
explained that customers can ,play the market,- ,buying, when the price is low and ,selling, when the price is high.
,When the price is low, customers can ,buy in, from other persons and hold until the price recovers,, he
explained, ultimately giving oneself at opportunity at income generation and capital negotiation.He
said a Stock market allows owners of stocks and shares to dispose of them at a fair price.