This week we’re looking at how does having a stock market benefit the entire country. For most people. The ordinary man for example, the stock market is just something that the rich people play around with but the truth is the stock market really is an institution, a marketplace for the raising of capital.
It is that place which helps businesses to find financing for their business proposals, for their business entities. So if that is the case the more businesses that can raise financing through the stock market. The more is the possibility that employment will increase and if you only have to look at the junior market and how it has performed for example where companies on the junior market has been able to significantly increase their profits and this has been plowed back in the business and it has increased production and increased employment has been brought with it.
Another angle at which we can look at is the whole business of growing and creating wealth.
So yes we’ve seen that it creates wealth for the business man who is raising capital to drive his business. But for the ordinary investor taking your money to invest in a stock market which performs as well as the Jamaican Stock Market did last year being the number one market performer in the entire world. We are looking at putting your money in an investment which if and when it grows will see your wealth growing tremendously.
Many people invest in the stock market for two main reasons:
1. To get dividend
2. For capital gains which really is gaining more money on your money.

And it’s not just something that the rich people invest in because if for example you only have $5000 to invest and the market gives a return of 20% you have made 20% on your $5000 while the richer person would have made 20% on his whatever amount he invests. The fact is had he not invested that 20% would not have been made/
So don’t be scared, don’t be intimidated by the stock market. It is there for everyone to invest in and at the same time the monies that go into the market help to drive businesses, help to raise capital, help to finance businesses to create wealth, to create growth, to increase production and create more employment for the ordinary citizens of this country.