Nat’l Tymes News Desk
THE DEPUTY Director-General of the Securities and Exchange Commission (SEC) in charge of Finance, Mensah Thompson, has explained how buying shares in Ghana really works, following constant questions from the public.
According to him, many people mistakenly believe shares are bought directly from the SEC. However, all share trading happens on the Ghana Stock Exchange (GSE) — not at the SEC. “To buy shares on the GSE, you must go through a licensed broker,” he said. The SEC only licenses and regulates both the brokers and the Exchange.
How to Buy Shares
Mr. Thompson outlined the simple steps involved:
1. Contact a licensed broker.
Tell the broker the shares or companies you are interested in. Brokers may also advise you on strong-performing stocks.
2. Broker requests prices.
The broker will send a Request for Quotation (RFQ) to find out the current market prices.
3. Give approval to buy.
Once you agree to the price, the broker goes ahead to buy the shares on your behalf.
4. Settlement and account creation.
If you do not already have one, a Central Securities Depository (CSD) account is created for you.
The shares you bought are credited to your CSD account, and the seller’s account is debited.
Payment is then transferred from the broker to the seller.
Mr. Thompson stressed that although the process may sound complex, it is “a seamless system that brokers in Ghana have perfected over the years.”
Improving Access to the Stock Market
The SEC acknowledges that Ghana’s stock market still lacks visibility and easy public access. To address this, it is developing a new digital system known as the Central Securities Access and Monitoring System.
The project is currently at the scoping stage. Once completed, it will allow Ghanaians to view and access the Ghana Stock Exchange more easily — still through licensed brokers for trading and settlements. “It is simply an automation of the current process. Nothing will be disrupted,” Thompson assured.
Encouraging Youth to Invest, Not Bet
The SEC also hopes the new system will help channel more young people’s money into investment rather than sports betting.
“Our target is to redirect at least 60% of the disposable income that young people spend on betting into the stock market, where they can build sustainable livelihoods — not through games of chance,” Mr. Thompson argued.
Source: Nationaltymes.com
