Reminder To Investors

Investment in Capital Markets involves risks, as prices of shares go up or down therefore, investors should read all relevant information regarding the concerned securities. Accordingly, the investor must be familiar with his/her rights and  obligations in order to have a high degree of awareness to achieve the desired investment objectives and avoid risks that  one might expose to, this requires from the investor to be aware of many aspects including the following:-

  1. Determine the investment objectives, amount to be invested and expected duration for investment.
  2. Invest the extra money from income and keep sufficient liquidity to meet the daily needs and obligations and don’t exceed the financial commitments more than the ability.
  3. Review legislations issued by the JSC and relevant authorities on securities investment and investor rights.
  4. Select the brokerage companies which are licensed by the JSC and operating in the ASE, and conclude a written agreement between the investor and the brokerage company that includes services provided by the brokerage company and commissions charged by it.
  5. Read the articles of association and the prospectus of the company targeted for investment, and understand its contents.
  6. Study and analyze the financial statements of the company targeted for investment.
  7. Don’t take any investment decision based on rumors and gossip.
  8. Follow-up price movement in the ASE and economic indicators, and the relationship between them.
  9. Follow-up detailed data about the investment by requesting periodic account statements which show the movements executed within the account.
  10. Making diverse investments by investing in more than one security and one sector to avoid the risk of focusing investment on a specific security or sector.
  11. Attend meetings of the companies.
  12. Follow-up disclosures issued by public shareholding companies.
  13. Follow-up the decisions issued by regulatory and supervisory related to public shareholding companies, brokers and custodians.
  14. Follow-up to receive dividends that are distributed periodically from the companies.
  15. Follow-up companies' information available in the SDC's web site.

If required, investors should obtain independent legal, financial & other professional advice before making an investment decision.

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