Bereng Mpaki

A SOUTH African college is currently holding countrywide seminars on the workings of stock markets to equip prospective investors.

The Midrand-based Stock Market College (SMC) was founded by former Johannesburg Stock Exchange (JSE) employee, Hardus Van Plesten in 2012. The institute opened a branch in Lesotho in January this year and has been holding the countrywide presentations for free. SMC’s official launch in Lesotho is scheduled for August this year.

According to SMC Sales Representative Bokang Molelle, the institute trains prospective investors on how to trade various commodities on the bourse such as shares, commodities and foreign exchange among others. A stock exchange is an exchange where stock brokers and traders can buy and/or sell stocks/shares, bonds, and other securities.

Lesotho’s first stock exchange, Maseru Securities Market (MSM), was launched in January this year to facilitate the centralised trading of financial securities in the country.

Mr Molelle said the college equipped prospective investors with knowledge of how to analyse the market to determine the right time to invest, how to buy and when to sell stock and in which products.

“The purpose of these presentations is to introduce SMC to the people, what it does and how that can help people in trading in the stock market. After the presentations, those people who are interested to study with us may apply,” he said.

“The full details of how to trade on the stock market would be taught to people who would have enrolled with us.”

Mr Molelle also revealed that the institute had a tutoring section where initial training is conducted and the brokering section – called Quick Trade – where trainees are mentored on trading in the stock market.

He said SMC was established after the observation that many people in the country had not ventured to invest in the stock market despite the bourse offering higher returns on investment than ordinary financial institutions.

“People want good return investment options in which they can put in their money, but many are not aware of stock markets, which have been known to be a marketplace for high-income earners or companies rather than individuals,” said Mr Molelle.

“Many people are not aware that they can bypass the existing financial institutions and go straight to the stock market to invest their monies.”

Contrary to popular belief, he said, stock markets were accessible to low-income earners too, although they were more popularly used by companies and high-income earners.

“People seem to believe it is only the banks and the insurance companies that have access to the stock market, but in truth individuals can also invest in the stock market provided they have a broker who would assist them in doing so.”

Added Mr Molelle: “That is why SMC decided to take it upon itself to train people on how they can go about trading in stocks so they can build their wealth.

“Another advantage of trading in stock markets is that you get a high return on your investment than when you have invested in the ordinary financial institutions because these financial institutions make their money by investing in the stock market. However, they deduct certain service charges to their clients.”

He said the risks of losing out on an investment were far lesser in a stock exchange since there were mechanisms to prevent such situations. Mr Molelle also said after receiving the training, the participants would be able to trade in any stock market including the MSM or the Johannesburg Securities Exchange.

The first round of presentations began in January this year. The next batch of presentations will be held in Maseru at SMC offices near Memorial Hall on 25 June, Butha-Buthe at Crocodile Inn on 2 July, Leribe at Mountain View on 3 July, Berea at Blue Mountain Inn on 9 July, Mafeteng at Mafeteng Hotel on 10 July, Mohale’s Hoek at Hotel Mount Maluti on 16 July, Quthing at Orange Hotel on 17 July, and Qacha’s Nek at Thimo Hotel on 30 July.

The institute is registered in South Africa with the Financial Services Board as well as the Direct Selling Association of South Africa.