In safeguarding your investments in stocks, the following steps should be taken seriously: 1. Know what you are doing .You must know the reasons why you want to invest in a company or public offer. Become knowledgeable and speak often to your stock broker,
to be able to keep abreast with current happenings in the stock market. You must be on top of the developments in the company you invest. Know where you keep your certificate or CSCS.
2. Be ahead of the Game
You must know the performance of your company. This will help you to be prepared to buy more, sell or trade the share. Much activity in your shares will cause the stock broker to steer clear.
3. Keep Good Records
You must keep vital records. These include:
i. Name of company you have shares in.
ii. Quantity of shares you have with the company.
iii. When and how much you bought on each transaction..
iv. Name of stock broker that sold them to you.
v. Whether you have received the certificate or if the additional units have credited to your CSCS (Central Security Clearing System) account. If you do not have this account, try and maintain one.
vi. Keep all contract notes from your stock brokers and receipts for payments made for public issues. Keep all the buying and selling evidences, even after you have gotten the certificate or know your units are credited to your CSCS account.
4. Convert your Stock Certificates to CSCS
i. Insist that your stock broker must have a written approval from you before selling your shares.
ii. You must also put all share instructions in writing.
5. Monitor your Investments
i. Check that all documents received from share registration agents are correct.
ii. Check your selling or buying orders and contract notes to ensure they are correct.
iii. Check your CSCS statements from your stock broker to ascertain that all companies are listed. If you find any inconsistency, get your stock broker you adequate explanation and ensure appropriate correction is made.
6. Learn a lot and Continue to Learn.
You must learn a lot about the business and continue to learn the business of investing and exercise adequate care to protect your saving and build lasting wealth. That can be done by taking active part in protecting your interest and not by sitting on the fence.
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