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Welcome to our Beginner’s Course on Trading the Stock Market in Bursa Malaysia.

Introduction to the Stock Market

Welcome to the exciting world of investing and trading!

We’re excited to have you join us on this journey into the world of investing. This course is designed to provide you with the foundational knowledge you need to start your investment journey confidently. We hope you find this client-only exclusive content informative and enjoyable.

Who am I?

I'm Mr. Nasir, your friendly remisier. With years of experience in the market, I'm here to guide you through the intricacies of investing and trading. Remember, this is not just about making money; it's about building a solid financial future.

What is the Stock Market?

The stock market is essentially a marketplace where pieces of ownership in companies are bought and sold. Imagine a bustling market where instead of fruits and vegetables, you're buying and selling parts of companies. These parts are called shares or stocks.

Imagine a market, but ownership of companies are being traded.

When a company wants to raise money to grow its business, it can offer a portion of its ownership to the public by listing on a stock exchange. Investors can then purchase these shares, becoming part-owners of the company.

The stock market is where these shares are traded. Prices fluctuate based on supply and demand, reflecting investors' perception of a company's future performance.

How Does the Stock Market Work?

The Buying and Selling Process

To buy or sell a stock, you typically need to go through a broker or a Participating Organization (PO). A PO is a licensed financial institution who facilitates trades on your behalf. You place an order with your PO, specifying the stock, quantity, and whether you want to buy or sell.The PO then matches your order with another investor who wants to do the opposite (buy if you're selling, sell if you're buying). Once a match is found, the trade is executed, and your shares are bought or sold.

Supply and Demand

Stock prices are primarily driven by supply and demand. If more investors want to buy a particular stock, the demand increases, driving the price up. Conversely, if more investors want to sell, the supply increases, pushing the price down.Factors influencing supply and demand include company performance, economic conditions, industry trends, and investor sentiment.

Key Market Participants

Several key players operate within the stock market:
  • Investors: Individuals or institutions that purchase stocks with the goal of long-term growth or income.
  • Traders: Individuals or institutions that actively buy and sell stocks within a short period, aiming to profit from price fluctuations.
  • Brokers: Licensed professionals who facilitate trades on behalf of investors and traders.
  • Market Makers: Institutions that provide liquidity to the market by buying and selling securities at their own risk.
  • Exchanges: Organizations that provide a platform for trading securities, such as Bursa Malaysia.
These participants interact to create a dynamic and competitive market.

The Role of Bursa Malaysia

Bursa Malaysia's Logo

Bursa Malaysia is the primary stock exchange in Malaysia, serving as a central marketplace for the trading of securities such as shares, bonds, and derivatives. It plays a crucial role in the Malaysian economy by:

Facilitating Capital Raising

Bursa Malaysia provides a platform for companies to raise capital by issuing new shares or bonds. This capital is essential for businesses to expand, invest in research and development, and create jobs.

Promoting Economic Growth

A vibrant stock market can attract foreign investment, which can boost economic growth and development. Bursa Malaysia's performance is often seen as an indicator of the overall health of the Malaysian economy.

Providing Investment Opportunities

Bursa Malaysia offers a wide range of investment opportunities for both local and foreign investors. This can contribute to wealth creation and financial stability.

Ensuring Market Integrity

Bursa Malaysia is responsible for maintaining market integrity and protecting the interests of investors. It has rules and regulations in place to prevent fraud, manipulation, and other misconduct.

Summary

In summary, Bursa Malaysia serves as a vital hub for the Malaysian capital market, connecting businesses, investors, and the broader economy.

In the next module, we'll dive deeper into the types of securities, and understanding fundamental key terms and concepts. Stay tuned!

How to Fund Your Account
To transfer your funds, please follow these steps. You must already have an account with us to proceed with this step.
Types of Securities in Bursa Malaysia
Bursa Malaysia offers a range of securities for investors to choose from.