A stockbroker (broker) is a direct link between the client and the stock market. Orders to buy and sell securities on the stock exchange are handled exclusively by this person. Brokers buy or sell shares on behalf of their clients and work to get their clients the best prices. Brokers participate electronically on the Trading (Platform) Floor and have advanced tools (the technology) to assist them in handling trades on behalf of their clients. The stock broker operates from a firm that is normally called a brokerage house and is registered by the Jamaica Stock Exchange and approved by the Financial Services Commission (FSC), hence the name Broker Member or Member Dealer. Currently there are twelve Broker Members or Member Dealers that are registered by the JSE to conduct business on behalf of their clients.
Companies can list on one of the JSE markets; these are the Junior Market, Main Market, Bond Market or the US Denominated Market. A listed company or a publicly traded company is one that has issued company shares to be traded on the Jamaica Stock Exchange. This is done in an effort to raise capital for the company; the price of the stock issued reflects the total value of the company.
A prospectus is issued by a company when it is offering shares to the public. Therefore a prospectus is a formal legal document that provides details about the investment offering. A prospectus normally contains the facts that an investor needs to make an informed investment decision. A prospectus issued in Jamaica has to be approved by the Financial Services Commission and the Companies Offices of Jamaica and reviewed by the JSE to ensure that the information required for listing is contained in the prospectus. The JSE has up to 5 years of prospectuses on its website for general viewing.
The JSE publishes a wide range of booklets, magazines and articles for public consumption on a yearly basis. These publications normally capture a wide range of market information with charts and graphs. The performance of the market is explored and readers and users are provided with information to embark on technical analysis which informs investors on issues such as “when to buy and when to sell or when to hold”. The information that the Stock Exchange captures throughout the year is diligently and methodically compiled and presented in these unique books.