FAQs

  • 1. FREQUENTLY ASKED QUESTIONS
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  • 1. How stocks and shares work?
     

    Investments in stocks and shares can fit some strategies and goals. Here’s how they work:

    • When you buy a share, you gain part ownership of that company.
    • Hoding shares gives you the right to vote on certain issues facing the business. The day-to-day conduct of the company’s business is carried on by a board of directors, which is voted in by the shareholders.
    • Any return you get from shares comes from share price growth or from dividends – payments out of the company’s profits. Returns from either profits or dividends aren’t guaranteed and you could get back less than you initially invested. You might get no dividends and the share price can fall.
    • There are two main kinds of shares – ordinary and preference. Most shares are ordinary shares. Preference shares may give holders priority when it comes to payment of a level of dividends and on liquidation of the company, however they don’t usually carry voting rights.
    • Preference shareholders usually receive fixed, regular dividend payments. However because the dividend is fixed, there is less potential for the share price to grow over the long term. Remember dividends aren’t guaranteed and share prices can fall as well as rise.
    • By holding shares from companies in different industries and regions, you can create a diversified portfolio and aim to spread your risk, which might help you achieve smoother returns.
    • If you’re unsure whether stocks and shares are right for you, you should seek independent financial advice. All investments can fall in value as well as rise and you could get back less than you initially invested.
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  • 2. What is a Share?
     

    A share is a piece of ownership of a company or enterprise. When you buy a share, you become an investor and thereby an owner of a piece of the company’s profits or losses. By buying a share, money which could have been idle or otherwise held in low interest earning savings, moves to a more productive economic activity. The profitability of investing in shares however; depends on among other things, a good management of the company, avoidance of wastage and, a Conducive business environment

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  • 3. Why do Companies Sell Shares?
     

    Companies sell shares to Raise (borrow) money from members of the public to expand their business activities in order to make more profits. They invite members of the public to buy shares and by so doing, have a say of running the company as lenders of money and owners. Shareholders expect a profit as a reward from lending their money to expand the business of the company.

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  • 4. Where and how can i sell my Shares
     

    You can sell your shares through any of the DSE stockbrokers, either by phone or by going there directly to give them order to sell your shares. Many of the Brokers have agents upcountry or have got interactive websites that you can use to access the Broker, or of call them by phone. You can also sell through MaxMalipo using your mobile phone through a routine that randomly assigns you to a Broker of your choice

    Selling of shares begins 24TH April 2017.

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  • 5. Are there any risks?How can i mitigate them?
     

    Yes, there are risks, risks related to the Company, risks related to the industry and risk related to the macro-economy. Like all businesses, there is no guarantee that the business will perform as well as expected or at all. The Company will be investing in shares of listed companies, which means that its valuation will follow then performance of the individual companies. It is also possible for shares on the DSE to go up in value, or go down. Past performance is no guarantee that it will be repeated.

    Mitigation is possible to some extent but if we know them, they stop being risks. You must therefore seek advice of professional advisers at all times. You must participate in all press briefings and attend annual general meetings as long as you remain a shareholder. Generally speaking, the nature of the business is so transparent and our Board and Management so experienced that we are unlikely to be hit by total surprises.

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  • 6. Who should Invest in Shares?
     
    • Anyone can, high net worth as well as small investors.Institutional investors and companies.
    • Formula is to start small, invest wisely and stay the distance
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  • 7. Who is a shareholder?
     

    A shareholder is an investor who buys shares with an expectation of profit. Profits in shares are through dividends, gains in share prices, bonuses, rights etc. A shareholder owns a piece of the company (his/her profits equal to the number of shares he/she owns).

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  • 8. What are the Benefits of Owning Shares
     
    • A source of profits;
    • A guarantor for borrowing loans from cooperative societies and banks;
    • A way of saving your money for the future;
    • An easy and quick asset to buy and/or sell;
    • A new business activity that is beneficial in many ways. An investor can trade in shares the same way traders in other markets trade in maize, bananas, potatoes, tomatoes, onions, mangos etc.;
    • Buying at low prices and selling at high prices to make profit;
    • A solution that increases financial activity and economic growth.
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  • 9. What is DSE?
     

    DSE is a short term for name The Dar es Salaam Stock Exchange – a secondary market for financial products. The Dar es Salaam Stock Exchange is a body corporate incorporated in 1996 under the Companies Act, 2002 as a company limited by guarantee without a share capital. It became operational in April, 1998.

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  • 10. What makes the stock exchange market different from other markets?
     

    The main thing that makes the Stock Exchange Market different from other markets is the types of products traded, how they are traded, and how they are paid for and transferred.

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  • 11. What products are traded at the Dar es Salaam Stock Exchange?
     

    The products traded at the DSE are financial products. Currently the financial products traded are Shares and Bonds; Shares are also known as Equities and Bonds are also known as Debt instruments. Collectively, the products traded at the DSE are referred to as Securities.

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  • 12. What amounts can an Investor buy?
     

    An investor can buy as little or as much as he or she can afford. It is also possible to invest very little money in groups of small investors pooled together by fund managers in the market.

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  • 13. Minimum Number of Shares
     

    Shares are bonded in minimum lots of 10 shares and above in the main market boards. Fewer shares than 10 are available on the odd lots board.

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  • 14. What are the Benefits of Owning Shares
     
    • A source of profits;
    • A guarantor for borrowing loans from cooperative societies and banks;
    • A way of saving your money for the future;
    • An easy and quick asset to buy and/or sell;
    • A new business activity that is beneficial in many ways. An investor can trade in shares the same way traders in other markets trade in maize, bananas, potatoes, tomatoes, onions, mangos etc.;
    • Buying at low prices and selling at high prices to make profit;
    • A solution that increases financial activity and economic growth.
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  • 15. What are the Requirements for an investor to open a Trading Account( CSDR)?
     
    1. Identificatioin Eg: Driving licence, Voting Card, National Identification, Passport
    2. Physical Address
    3. Bank Account Details
    4. A Filled Client Information form(KYC) which can be downloaded here
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  • 16. What are the requirements of Transfering shares form one person to another?
     

    Note:Transfer of shares take place for only blood related individuals.

    1. Husband To Wife and vice versa
    2. Father/Mother to children and vice versa
    3. Brother to Sister and vice versa
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  • 17. What are the 2 types of transfers?
     
    1. Probate (deceased to a living person)
    2. Decision (both are alive)
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  • 18. What are the Requirements for a Probate transfer to take place (Husband To Wife and Vice Versa)
     
    1. Death Certificate
    2. Marriage Certificate
    3. Family minutes
    4. Court Letter
    5. Administrator or Beneficiary identity card
    6. Original Share certificate
    7. Filled in Client information form & Private transfer form.
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  • 19. What are the Requirements for a Probate transfer to take place (Father/Mother To Children and Vice Versa)
     
    1. Death Certificate
    2. Birth Certificate
    3. Family Minutes
    4. Court Letter
    5. Administrator or Beneficiary identity card
    6. Original Share certificate
    7. A filled in Depository account Application form and Private Transfer form
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  • 20. What are the Requirements for a Decision Transfer to take place?
     
    1. Written letter to request for shares transfer.
    2. Marriage/Birth certificate depending on type of relationship
    3. Identity card of both transferee and transferor
    4. Original shares Certificate
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  • 21. Requirements needed when a person want to re-issue his/her certificate (this is when certificate is lost, destroyed or misplaced).
     
    1. Police Loss Report
    2. Client Identity card
    3. A filled-in Amendment form & misplaced form.
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