Q. What is share?
Each share represents a small stake in the total paid up capital of a company. In fact a public limited company is one that is formed to accumulate capital from a large pool of investors. Therefore total capital of such companies is divided into smaller equal denomination units represented by a share/ capital. One may buy large or small lots to match the amount of money that one wants to invest.
A company's share price can rise or fall as a result of its own performance or market conditions. Once the shares are bought and transferred to new investors name, the name will be entered in the company's share register, the new investors will then be entitled to receive all the benefits of share ownership including the rights to receive dividends, to vote at the company's general meetings and to receive the company's reports.
Q. What is 'IPO'?
Initial Public offering. IPO means while a company wants to raise fund from the general public, it goes for public offering after completing necessary regulatory compliances.
Q. What is 'Market Lot' ?
A Market Lot is the smallest tradable unit for an instrument except those traded in the Odd lot book. All order quantities can only be an integral multiple of the Market lot.
Q. How do you select the company Before You Invest?
Don't put in your money until you have understood all relevant information regarding the investment. Prepare yourself for the vigorous homework of analyzing company's annual reports, EPS (Earning Per Share), accounts and other statements while keeping abreast of what's happening in the industry, country and elsewhere that may affect your investment. Consult your investment adviser/broker to get latest market information about shares you intend to buy or sell. Be skeptical of any thing picked up from rumors, particularly if you cannot rationally explain their choice.
Q. What is 'Odd Lot'?
Stock market shares are generally bought and sold in market lots, which are easy to trade. Any number of shares less than the market lot makes an odd lot. Odd lots typically arise from bonus or rights issues.
Q. Maximum how many accounts can a person Open or have?
Maximum 2 accounts can be opened, one single and one joint.
Q. How equity increase or decrease?
Equity increases by:
- Realized gain.
- Dividend income.
Equity decreases by:
- Unrealized or Realized loss
- Financial Charges
- Fund transfer or withdraw.
Q. How much money can be had in Margin/Loan at maximum?
Q. Will the purchase power decrease even if a client does not perform any trade?
Yes, if loan is used, interest charge will be applicable and for existing portfolio management fee will be accrued which will deduct Equity and Purchase Power.
Q. When a person is named as a authorized person during the opening of an account, then is he required to bring an authorization letter every time he comes to withdraw a check?
No, not required.
Q. Does unrealized gain has any impact upon purchase power?
No. Only realized gain.
Q. When netting is not allowed?
Netting is not allowed due to the following reasons:
- Z category shares.
- When Equity to Debt ratio falls below a certain ratio.
Q. Can I attend the AGM / EGM of the companies and cast vote?
No, you will not be able to attend the AGM/EGM of the companies, however, your portfolio manager will attend the AGM/EGM on your behalf and cast vote in the best interest of the clients.
Q. Who can open the investment account?
Any adult citizen of Bangladesh, corporation and statutory body can open the account with SJIBSL
Q. How can I place the orders?
You can place your orders through physically submitting the order slip to our Customer desks, or by telephone..
Q. What is Margin call?
In order to protect your equity position and investment, your portfolio manager calls additional margin deposit in case your equity falls below a certain percentage of your debt obligation to maintain the stipulated debt to equity ratio. Such call is commonly known as Margin Call.
Q. Can I trade in both Dhaka Stock Exchange and Chittagong Stock Exchange?
Yes, you can execute trades in both DSE and CSE, provided that your preferred broker is a member of both DSE and CSE