1. www.jse.co.za Copyright© JSE Limited 2009 1 JSE Equity Market How do I invest?

2. www.jse.co.za 2 Where does trading take place? From Open Outcry …..1887 To Electronic Trading…1996

3. www.jse.co.za 3 How do I invest? Buyer A South African investor picks up his copy of the paper or financial magazine

4. www.jse.co.za 4 How do I invest? Buyer So many companies. Where do I start? I’ll look at the companies’ profits and how well their share prices have grown. I can always ask my stockbroker for advice The investor does research on the economic environment and how well companies are performing

5. www.jse.co.za 5 How do I invest? Buyer Hmm…Sasol shares look like a good investment Stockbroker He’s interested in purchasing some shares, so he decides to place a BUY order for shares with his stockbroker.

6. www.jse.co.za 6 How do I invest? Stockbroker I can also give my client advice… His broker then sends that order electronically into the JSE market

7. www.jse.co.za 7 How do I invest? Stockbroker I must get the best price for my client The JSE then sends this order, via a communications lines, up to London

8. www.jse.co.za 8 At the same time… Seller My investment has done well…I think I’ll sell A South African investor, wants to sell her shares

9. www.jse.co.za 9 At the same time… Stockbroker Seller I can also give my client advice… She places a SELL order for her shares with her stockbroker

10. www.jse.co.za 10 How do I invest? Stockbroker I must get the best price for my client Her broker then sends that order electronically into the JSE market

11. www.jse.co.za 11 A Trade Seller Buyer I SOLD my shares! I BOUGHT my shares! The BUY and SELL orders MATCH and a TRADE happens

12. www.jse.co.za 12 The Result Seller Buyer I got my MONEY! I got my SHARES! Stockbroker And…we were both paid for our services!

13. www.jse.co.za 13 So what happens? Seller Buyer The Share…and many others Throughastockbroker At the best agreed price