DID you know that the first stock ex- change in Zimbabwe was established shortly after the pioneer column arrived in Bulawayo in 1896?
It only operated for approximately six years, and other exchanges were estab- lished in Gweru and Mutare. With time, one exchange remained, but exchanges
were found in towns across Zimbabwe.
This is just one small piece of information shared in the Securities and Exchange
Commission of Zimbabwe’s (Secz) investor handbook, Investment 101: A Complete Guide to Help You Become an Astute Investor on the Zimbabwean Capital Markets.
Most people find investment discussions to be complex and have the perception that they are for the sophisticated; the principles are inaccessible.
The Investment 101 handbook published by Secz is meant to provide the tools and guidelines that a prospective investor would need, to help them make informed decisions.
Every investor requires information in order to make a decision about any form of investment.
The handbook therefore takes potential investors through the basics they need, preparing them as much as possible before investing.
Potential investors can expect to read a broad range of topics that are important for investing.
The handbook begins by providing a historical perspective of the financial markets.
It also explores economic principles because the economic performance of a country determines the pricing and valuation on the stock markets and other financial markets.
The handbook looks at financial market structure and regulation, then zeroes in on the capital markets.
Capital markets are the main theme presented, therefore topics such as understanding stocks and bonds are discussed in depth.
Potential investors can also learn about analysis; understanding the tools that professionals use before they make a decision about whether someone should in-
vest or not.
The handbook also introduces investors to basic portfolio management, helping them to be better prepared for investment.
The handbook helps potential, but also existing, investors understand the broader investment industry, then provides specific information on Zimbabwe.
It is important for investors to know that investing happens in Zimbabwe and beyond, and some of the instruments and assets that are traded locally are also traded in other markets.
This means Secz is working to prepare investors for innovations that are happening globally. For this reason, the handbook goes beyond what is currently available in Zimbabwe, and looks towards the future to what might be available five or 10 years from now.
The handbook will be continually updated as information changes.
Members of the public can download an electronic copy of the handbook on the Se website: www.seczim.co.zw. The handbook is also available in hard copy from the Secz offices.
You can also find information and videos on Secz and the work we do on our website.
This article was written as part of the Securities and Exchange Commission of Zimbabwe’s Investor Education Campaign, in partnership with the Investor Protection Fund.