Investor Corner

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Are you an informed investor? Knowledge empowers people. Similarly adequate knowledge about the stock market will strengthen your portfolio and enable you to maximize your returns. Adequate knowledge requires investors to be informed about all aspects of investing. Today’s article will focus on certain areas of investing in the stock market that many investors are not familiar with. Read
Calculated risk taking in the stock market Tom Fernando retired last week after a 45-year long career. He intended to invest his life savings of Rs.5 million and enjoy his retirement. One day, a handsome young stock market advisor, the son of Fernando’s friend, came to meet him. The lad introduced a business plan to invest his savings. He pledged to double Fernando’s savings within five days by investing in the stock market. Fernando was impressed by the offer. Subsequently, he opened an account and handed over his life savings. Read
Benefits of End-to-end digitalization of the Colombo Stock Market for Investors Investing in the stock market is a great way to create wealth but typically requires planning, patience and a long-term commitment. To increase investor participation and make the stock market accessible, affordable and convenient for investors to channel their funds and grow their wealth the end-to-end activities of the Sri Lanka Stock Market was digitalized recently. A joint committee comprising of representatives of the SEC and CSE was instrumental in digitalization of the market.  Read
How to buy/sell shares in the Primary Market and the Secondary Market? In the Primary market from a new share issue (Initial Public Offering) An investor who wishes to buy shares should open a Securities Account in the Central Depository System (CDS) through a stockbroker or a custodian bank. There are 29 licensed stock broking firms (including one Debt Trading Member of the CSE). Read
Invest wisely in the stock market: Advice from your regulator for 2016 The Securities and Exchange Commission of Sri Lanka (SEC) wishes the investor community a prosperous New Year. Striving towards prosperity greatly depends on the financial decisions we make. Thus, today’s article will provide the basic information that would assist investors in financial decision-making. Read
Mistakes first-time investors make Investing in the stock market is a good way to plan for your future and the earlier you start, the more you will get out of it. Saying that, there are some common mistakes made by first-time investors that can reduce profits. The article would address a few of these mistakes. Read
Social media and the Sri Lankan stock market “ The dark side of social media is that within seconds anything can be blown out of proportion and taken out of context. It is very difficult not to get swept up in it all” -Nicola Formichetti Internet penetration in Sri Lanka has been increasing rapidly during the last few years. According to the Central Bank of Sri Lanka, the total Internet connections grew by 68.4 percent during 2014. As a result, social media has become a powerful and persuasive mode of communication. It has influenced our lives in all possible forms, including financial decision-making. Today’s article will focus on the nexus between social media and the local capital market. This is a formidable aspect that cannot be ignored if we are to maintain efficient markets. Read
Stock market myths Investors at times underperform by following investing strategies that are based on perception rather than long-term research or reality. Even though there have been many studies showing what does  work, several stock investing myths continue to exist. Understanding and avoiding these myths can make a substantial difference in wealth over your lifetime. Read
The stock market is not a gamble Many of our readers would have heard the unjustifiable mantra “Investing in the local stock market is similar to gambling in a casino”. This has become a common topic in political forums and private gatherings. If an individual equates a stock market to a casino/gambling it clearly shows his ignorance. Such people lack knowledge on how financial markets work. The situation is intensified as these false rumours can create a sense of unwarranted resistance towards the market. Thus, it is timely to undo the baseless and ignorant statement by inferring into the difference between investing in the stock market and gambling. Read
Timeless investment principles During the last few weeks we discussed the prevailing conditions in the local capital market. Reasons for the market downturn and relevant market sentiments were extensively discussed. However, today’s article is slightly deviated from the said topic and adopts a well-acclaimed global perspective towards investing in the market. It is undoubted that this standpoint would enable you to be more resilient even during a market downturn. Read
Stock market stakeholders: FAQ Many retail investors believe that market performance is shaped by the actions/omission of the stock exchange, regulator, investors and listed companies. Nevertheless, there are many other stakeholders who play a decisive role in shaping the stock market and the capital market in general. Are you aware of the functions of these stakeholders? Today’s article will enable you to clarify your doubts. Read
Stock market volatility and investment opportunities Equity is an ideal financial instrument for a portfolio that is geared at long-term returns. It is undoubted that the rate of return on equity has been impressive when compared to other instruments. If the market generates lucrative returns in the long run it is natural to question why investors are indifferent towards market volatility. At a juncture the Colombo Stock Exchange (CSE) is experiencing a certain level of volatility, it is timely to answer the aforesaid question by elaborating on market volatility and long-term investment opportunities. Read
The Value Investor’s Handbook Unlike some investment strategies, value investing is pretty simple. It doesn’t require that you have an extensive background in finance (although understanding the basics will definitely help), sign up for an expensive subscription service or understand how to analyze squiggly lines on charts. If you have common sense, patience, money to invest and the willingness to do some reading and accounting, you can become a value investor. Here are a few fundamental concepts you’ll need to understand before getting started. Read
Want to be a stock market millionaire? We all dream of a better life. Thus, it is normal for human beings to pay attention towards an institution or individual that would pledge to assist them in striving towards their aspirations. The ledge would awaken the inner desire for abnormal returns that would pave the way towards a hassle-free life and blind us from reality. We will be too busy dreaming about what they promise instead of inferring into the credibility of the information and the risk involvement of blindly following such institutions/individuals.