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How to sell shares

Updated on October 2, 2010

The aim of investing in shares is to be able to sell when there is a rise in price so as to make profit. So many people are confused on when to sell their shares. The choice of when to sell depends on how much you invested.

For people like most of us who only have little to invest at a time, it is best to invest on a long term in order to allow the magic power of compound interest to produce millions for you. This should be for a period of five years and above.

For people who have enough money to invest like $5000 and above, it is better to invest either on the medium or short term basis and still make enough money from it. You can even invest for a period as short as six months and still grab millions depending on the company invested in, and how much you have to invest.

Whether you buy through an Initial Public Offer (IPO) or the Stock Exchange Market, you cannot sell your shares except through a stockbroker. So, for an IPO certificate holder who wants to sell, the following steps would apply:

1. Get a stockbroker and have him open a CSCS account for you (this is an account opened for investors on the stock market in which is deposited all shares bought for the investor. Shares must be deposited in the CSCS account before they can be sold).

2. Hand over your IPO certificate to your stockbroker.

3. Your stockbroker takes the certificate for verification after which it is deposited into the CSCS account. He then quotes for sell on the floor of the stock exchange market.

When your stockbroker makes the sale, the cheque is handed over to you after four days. This whole process may take up to one month to be completed.

But for a buyer who bought through the stock exchange, the following must be observed:

1. Place an order to sell through your stockbroker.

2. He sells and hands over the cheque to you four days after the sale. This may take less than or about a week.


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