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Investing in Qatar stock exchange (QE) demands a high quality of knowledge and resources; these can be acquired by taking a proper insight of the foundations. There are around 43 companies in Qatar exchange1. If a person wants to invest on QE then he has two ways either he choose the conventional way and go down to the bottom of exchange and give his order to broker, or he can simple use the modern method by calling broker. There are stockbrokers who act as mediator for every investment deals. There are 11 stockbroker enterprises that have licensed from QE. People who are interested in investing can access websites of these brokers to punch their orders. To start with your buying and selling process at QE you need to have a card specifically an investor card that hold your national identification number. It is in the wish of investor whether to sell or buy shares all he need is to provide adequate information to broker. When an investor want to buy a shares, he needs to provide certain information like, in which company he needs to invest, how many shares does he need to buy, what is the validity of order, what is the price per share. Likewise if someone is intending to sell his shares then he needs to go through certain questions. Orders that are punched are classified into two classes depending on the validity of order, if the order is valid for a day it is termed as Good till date (GTD) and if the order remains valid until the investor cuts off then this is classified under Good till cancel (GTC).
Features2:
Easy access to fluctuating prices through personal computers. Investors don’t need to come by the stock market every time to keep themselves updated.
Newspapers publish daily share prices. And companies culminate their annual financial report so that investors can be protected and updated.
Stock market official website gives you an overview off all the progress being carried out weekly, monthly or yearly
QE index help an investor to learn the net performance being carried out on everyday basis.
Income flow lets the investor know the profit company made. And it is in the hand of director of company to either give off the cash dividend of the profit or distribute stock depending upon the number of stock each stockholder have. (see appendix) that shows report for Waqood company, which shows distribution of stock and cash dividend4. Moreover, example for QNB shows distribution of cash and stock dividends between 2009-20145. See appendix.
Liquidity is a term used which means investor can turn his stock into cash immediately whenever he needs. As Al-Mansoori stated ‘We continue to seek out ways to improve liquidity across the board for the benefit of all,” and that can happened via liquidity provision moreover personal investors can use marginal trading via borrowing money from local banks or brokers to leverage his financial profits 6.
Competitive advantages2:
The term stock basically means shares or equity. It shows rights and part of ownership of company to investor.
As compared to other investments there is low transaction cost2.
There is no income tax. As stated by Latham and Watkins, profits of business owned by Qatari are not taxed. 3
Risk can be easily diverted. This is because of the division of market companies into 7 sectors by QE. (See appendix) were the investors can easy choose to diversify7.
Important information can be acquired from financial analyst. The analyst helps the investor to invest their money by filling a report for different companies. Investors can easily access “Qatar stock analysis” at argaam website8 or go through financial statement of every company at Qatar exchange website9, for example, (see appendix) otherwise, visit the famous Qatari website for more detailed experience and news 10.
Recommendation:
The investors must take a proper review of the stock market and wait for the right time to buy or sell their shares. They should not make hurry and wait until the market stabilizes itself and prices move up so that quality and good shares can be bought.
The major advantage of investing in GCC is that it gives very minimal initial investing cost.
Work Cited
Listed companies in Qatar stock exchange: http://www.qe.com.qa/pps/qe/qe%20english%20portal/Pages/Listed%20Companies/Listed%20Companies?CompanyCode
Qatar stock exchange-investor guide: http://www.qe.com.qa/pps/qe/qe+english+portal/Pages/Investor+Corner/Become+an+Investor
Income tax :
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDcQFjAD&url=http%3A%2F%2Fwww.lw.com%2Fthoughtleadership%2Fdoing-business-in-qatar&ei=qNQ3VZvPEcb1OPTAgZgC&usg=AFQjCNH3pKCCHsSLp8rl_1ADFo6gWkDQcw
Waqoodroport: http://www.qe.com.qa/pps/qe/qe+english+portal/Pages/Investor+Corner/QE+Publications
QNP distribution 2009-2014 http://www.qnb.com/cs/Satellite/QNBQatar/en_QA/InvestorReln/enQNBDividendDistribution
Introduction “Liquidity provision for Qatar”:
Ali Al-Mansoor, M. R. (Director) (2014, October 14). Liquidity Provision provides a number of advantages for the market, listed companies and investors. Qatar Exchange holds a seminar entitled "Introducing Liquidity Provision". Lecture conducted from Commercial Bank Investment Services and Horizon Software, doha
Sectors of companies : http://www.qe.com.qa/pps/qe/qe%20english%20portal/Pages/Listed%20Companies/Listed%20Companies?CompanyCode
Analysis website: http://www.argaam.com/
Financial statement for a company: http://www.qe.com.qa/pps/qe/QE%20English%20Portal/Pages/Company%20Profile%20Pages/Financial%20Statements%20Details?CompanyCode=QIBK
Qatari analysis website: http://www.qatarshares.com/vb/showthread.php?606366-%D8%AC%D9%84%D8%B3%D8%A9-%D8%AA%D8%AF%D8%A7%D9%88%D9%84-%D9%8A%D9%88%D9%85-%D8%A7%D8%A7%D9%84%D8%AE%D9%85%D9%8A%D8%B3-23-%D8%A7%D8%A8%D8%B1%D9%8A%D9%84-2015-%D8%A7%D9%84%D8%AD%D8%B2%D9%85-4&p=10065630#post10065630
