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How online brokerage platforms are demystifying the stock market

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Investors can profit from owning stocks through two main avenues: capital appreciation and dividends.

The current state of the Kenya stock market has been marked by sinking stock prices, a situation often regarded by experts as the opportune moment for investors to enter the market. Yet, what comprises the Nairobi Securities Exchange, and how does one engage in this investment?

Gaining insight into the nature of stocks, the avenues for profit, and the process of opening an online investment account can empower individuals to actively engage in and seize the wealth-building opportunities currently present in the market.

Stocks, also known as shares, represent ownership in a company. When you own a share of a company's stock, you become a shareholder. Companies issue stocks as a means of raising capital, and investors purchase them in the hope that the company's value will increase over time.

Investors can profit from owning stocks through two main avenues: capital appreciation and dividends. Capital appreciation occurs when the value of a stock increases over time, allowing investors to sell their shares at a higher price than their initial investment. Dividends, on the other hand, are periodic payments made by some companies to their shareholders, providing a steady income stream.

The stock market is more accessible than ever, thanks to online brokerage platforms. Through these platforms you can now open a CDSC account to invest in shares online.

First, select a reputable brokerage platform from a broker who is licensed and regulated by the Capital Markets Authority. This information is available on the Nairobi Securities Exchange website.

Next, complete the online application: Fill out the necessary online application form, providing your basic personal information. Certain brokers streamline the account opening process, eliminating the necessity for document uploads.

In a matter of days, you can expect to receive your CDSC number conveniently through email. Third, deposit funds into your account: Fund your account using a mobile money transfer, bank transfer or other accepted methods.

The deposited funds will be used to purchase stocks. Fourth; explore the platform: familiarise yourself with the features of the online trading platform including a view of your portfolio, real-time market stock prices and other user-friendly trading capabilities.

The writer is Project Leader - AIB-AXYS Africa Stockbrokerage Email: [email protected]