IPSA understands that In order for a particular economy to attain an efficient and stable Capital and financial markets, there is always a need for public participation in the Markets, it is the public that contribute their funds into investment schemes, without public participation, business is unable to acquire the required funding for projects. There will be no good public participation in these investments schemes if the public its self is ignorant of the Markets, how can they participate, how can they stand to benefit for their participation and how are they protected after having participated.
The Johannesburg Stock Exchange (JSE) estimated to have 472 listed companies and a market capitalization of US$182.6 billion (€158 billion), as well as an average monthly traded value of US$6.399 billion (€5.5 billion). As of 31 December 2013, the market capitalization of the JSE was at US$1,007 billion, however , the participation of black people and other people from previously disadvantaged communities in the Capital and Financial Markets is very limited, it is estimated that black South Africans hold at least only 23% of the Top 100 companies listed on the Johannesburg Stock Exchange as at the end of 2013.
The shares held by black investors include 10% held directly (largely through BEE schemes) and 13% through mandated investment – mostly through individuals contributing to pension funds, unit trusts and life policies.
White South Africans hold approximately 22% of the Top 100 companies, while foreign investors hold about 39%, up from 34% in 2011.
This limited number of black and other previously disadvantaged community’s participation can also be attributed to luck of adequate financial literacy, investor information and investment education more especially at an early age.
IPSA provides the South African public with adequate investor information, Education starting from an early child hood and provide continuous Investor information, education, protection rights awareness, and enforcement to those that are particularly vulnerable, as a way of addressing the discrepancy that was created by the ills of the pastAdd to favorite