How to Purchase Shares in a Company in South Africa?

By Tked August •  Updated: 10/15/24 •  5 min read

Purchasing stocks in a firm located in South Africa can be one of the most effective ways of gaining wealth while at the same time earning partial ownership of a company. The shares mean equity ownership in a business; hence, the shareholders are entitled to capital appreciation and dividends. In SA, shares are sold on the JSE or through private sales. It involves several steps, irrespective of whether you want to acquire from a publicly listed agency or a privately owned firm.

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How Do You Purchase Shares in a Company?

The most common approach is through the Johannesburg Stock Exchange. This is a step-by-step process:

Can You Buy a Share of a Business?

Yes, a share in a business could be purchased, and it may be via either a public or private sale. Publicly listed companies sell and trade their shares on the stock exchange. Therefore, anyone with a brokerage account can invest in such firms. When you buy one share of such publicly listed companies, such as those on the JSE, you become a partial owner of that company, entitled to part of the profit via payment of dividends and capital appreciation.

It is equally possible to buy shares in a privately owned enterprise. In such a case, the process becomes different and, to a large extent, is made through direct negotiation with the business owners. The share would not be listed on any public stock exchange, and in most cases, acquisition would mean entering into a share purchase agreement. To an SME or a start-up business, shares may be given to or offered to an investor as part of an equity finance round or direct private deals.

Buying stock from private companies might be a little riskier than buying into public companies because of a lack of liquidity sometimes and unfamiliarity with financial data. Investors must invest intelligently, carrying out in-depth due diligence and seeking out as many legal and financial advisors as necessary to ensure that terms are clear and worth the potential return against risks.

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Which Company is the Best to Buy Shares from in South Africa?

Which Company Share Gives the Highest Profit?

When searching for excellent return promising firms, the starting point shall seek companies with fantastic performance history, good capital appreciation, and a good history of regularly paying their dividends. Several companies in South Africa have proved they can make considerable profits for their shareholders.

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