Demistifying the myths about the stock market

For many people, the stock market seems like a mysterious world reserved for the wealthy, or a risky gamble where fortunes are won or lost overnight.

But a financial coach, in an exclusive interview on GhanaWeb TV’s BizTech, says these perceptions are far from the truth.

The stock market is simply a place where companies sell shares to raise capital, and investors buy ownership stakes in those companies. When you own shares, you are entitled to a portion of the company’s profits, often paid out as dividends.

Trading on the stock market is regulated by laws designed to protect investors from fraud and unfair practices, making it a structured and transparent system.

To address the biggest misconceptions about investing in stocks, it is important to understand that the stock market is not a game of chance, nor is it reserved for the elite or the rich.

Anyone can buy shares with as little money as they have, you don’t need huge sums to start investing. In fact, you can begin with as little as GH¢100 or GH¢200.

Speaking on GhanaWeb TV's BizTech programme, financial coach Benjamin Anane Asamoah said, "One of the misconceptions is the gambling aspect, feeling that you put your money in, and tomorrow, you make some money out. Investing is not like a gamble. You have to focus on the companies, do your due diligence, investigate."

He added, "The second misconception is that people think you need a lot of money before you can invest. People say stocks are for the rich. When I started learning or reporting about it, I heard companies are listing and doing well compared to the BVM in South Africa. If you are not part of the elite group, you can't invest in stocks, this is not true."

For first-time investors, he advised going through a licensed stockbroker, who serves as the gateway to buying and selling shares on the market.

He encouraged Ghanaians to see the stock market as a practical tool for building wealth over time, rather than a game of chance.

Understanding Ghana's stock market and how to invest | BizTech



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