Colombo Stock Market

Share trading in Sri Lanka started in the year 1896. The trading was started by Colombo brokers association. In the beginning the trading was commenced in Limited liability companies. These companies were involved in opening tea plantations in Sri Lanka.

The formal stock exchange inaugurated in the year 1985. In this year Colombo stock exchange took over the market from Colombo brokers association.

Currently the companies listed in the CSE represent 20 business sectors. These companies market the capitalization of $7.2 billion. The capital marketed by the stock exchange is approximately 25% of the GDP of the country.

Let`s have a look at the two in dices of CSE. They are as follows.

1. All Share Price Index
2. Milanka Price Index

Colombo Stock Market

No one knows what the future will bring but it is not very likely that anyone will be able to rely on the social security handouts or even retirement funds. It is also not possible for people to be able to work for the rest of their lives either so investing is the way to counteract future financial problems.

You may be fortunate enough to have some money in short term, low interest savings but this will not be enough on its own so this money should be invested more wisely. Investing is also a way of getting the things that you want, such as a new home, a college education for your children, or expensive 'toys' and of course, your financial goals will determine what type of investing you do.

If need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. Retirement savings should not be placed into an account like this but into a safer investment area which can provide good growth in the long term.

The longer you plan this investment the greater the time period allowed for growth and it also allows for an early or unexpected retirement. You also cannot depend on the Social Security system to do what you expect it to do and as we have seen with Enron, you cannot necessarily depend on your company's retirement plan either so investing is the key to insuring your own financial future, but you must make smart investments!

That is not to say that investment is without risk either and is considered to be a game by man, one you will not know whether you have won or not until the very end. Games require two things, rules and a plan of how it is to be won and investing needs this strategy too. The way this strategy works is by carefully planning where you intend to invest your money and for how long so that your retirement needs will be met.

Each type of fund contains individual areas that you must choose from just as a clothing store sells clothes - but those clothes consist of skirts, dresses, shirts, pants, undergarments, etc. One such type is the stock market which has a huge number of companies from every type of area which a person can speculate in. Research is the key here and then more research if you want to ensure you are making sound financial decisions as the whole market is huge and can be very confusing for anyone who has not carried out some basic study in the area. Achieving your aim of financial freedom must start with researching the subject then putting into play your plan but there is no point starting this unless you are sure that your present financial needs are catered for.

A introduction to the regulations of Penny Stock: The popular understanding of penny stocks in the United States financial marketplace is a type of stock selling external to major stock exchanges. The ranking stock markets in US are NYSE and NASDAQ where the primary stock dealing comes about. So then, for a beginner, the investment funds in penny stock may be a good alternative but simultaneously, he or she should comprehend all the associated conditions and the rules affiliated with penny stocks.

Securities and Exchange Commission of United States Meaning of Penny Stocks: Even though the definition offered by the SEC is clear with respect to the trading of penny stocks, these are usually not dealt in NYSE or National Association of Securities Dealers Automatic Quotation. There's a occasional chance that these will be bought and sold at any established exchange, nonetheless the Securities and Exchange Commission has put the higher ceiling of five dollars for these risky stocks or shares.

US SEC: The purpose and aim of the US Securities and Exchange Commission is to protect the investors from hoax, swindle or other sort of embezzlement. The commission also ensures that the markets are efficient and honest in addition it promotes more and more investors to get benefit from the share markets. It's one of the mainstays for bettering the economic system of the US that will produce an increasing number of sound chances for engagement and sounder health and living criteria for the individuals of America.

The role of the committee is not restricted to guarantee special safeguarding of investors but it's in addition liable for setting up distinct regulations and guideposts for the simple operation of stock exchanges. They also decree guidelines for businesses wishing to obtain funds from the marketplace, and stringently supervise the fiscal and other activities of thes companies, plus make sure that the companies are attending to the best interests of their investors according to rules and road maps.

SEC Principles on Penny Stocks: As per the regulations established by Securities and Exchange Commission of United States, a agent or trader is required to sanction the customer wanting to sell the penny stock before the transaction. The broker should also get a written request from such customer.

SEC rules that a customer wishing who desires to buy a penny stock ought be given a written document mentioning the risk involved in the penny stock. The broker or dealer should in addition tell the client the up-to-date market place value of the penny stock and the commission that will be levied by the agent.

SEC further states that a monthly account showing the current market place rates of each penny stock owned by the client in their account ought to be sent to the customer.

To End: Penny stocks are ruled by detailed ordinances as made by SEC. The traders and traders ought to legally observe the directions otherwise they're subject to penalization. The Securities and Exchange Commission of United States rules supply security of speculators from fraud or misappropriation and dealers should in addition tell the speculator about the up-to-date marketplace range (and the brokers commission) prior to selling the stock.

The well know expression 'high-risk investment' sounds forbidding, and often this set phrase on its own is sufficient enough to put a good many savers off - probably because no one wants to take a chance. The difficulty with purchasing any form of stock (risky or otherwise) is that it is always a risk.

On that point is a great deal of information swimming around on the Internet regarding penny stocks. Nearly everyone with an e-mail address has gotten junk e-mail at some time, touting them as the next extraordinary investment. Sadly, much of this info is geared toward scamming you in some sort or another, and it's likely that you will lose your money that you put into the shares publicized in this fashion. This is not an indication that every penny stocks will be poor deals, or that every exclusive investment fund is a con, as a matter of fact, far from it as some may be very worthwhile financially.

Penny shares are affordably priced stocks or shares in companies or commercial enterprises that are believed "small," as opposed to big corporations. There are not large numbers of shareholders involved, making them less 'fluid' than a good many other forms of stock. The aim of investing in penny stocks it to spend only a tiny amount of money in the beginning to savor a big return afterwards, but does it happen like this? It does, sometimes, just not day in and day out but for people who are aware what they're doing when they invest, they can be a great investment funds instrument. Dominating the art of trading in penny stocks can be challenging, nonetheless.

Basically, penny stocks do not trade on the leading stock exchanges, rather, they are known as 'over the counter' or OTC investment funds, listed on Pink Sheets and the OTCBB. This means they are rather unique, and frequently more difficult to locate for a great many speculators. Penny stocks also don't trade very regularly, so often speculators do not have much time to to do something. As trading does not occur a great deal, there is invariably the fear of being not able to trade one's stocks and ending up with a poor investment funds. This is just all part of the challenge of dealing in penny stocks, and a great many speculators consider this makes the affair all the more stimulating. Whenever you commit, you should receive monthly updates that make you aware how your stock is preforming.

Some people consider penny stocks too risky but the only person who can resolve that is you. It's all down to how much chancing with your money you wish to do, how much you know about penny stocks, and how prosperous you feel. If you consider investing your funds in penny stocks is a healthy idea, then in all probability it is but everyone has a different view so learn more about them, and form your own opinion.