Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs) are arranged by area of interest.

If you still need a question answered, please visit the feedback form and submit your question to PoMSOX.

 

How do I buy and sell Shares?

All stocks listed on the POMSoX Market can only be bought and sold through a broker. The Stockbroker acts on your behalf to buy and sell shares, for which a fee is charged.

What is the minimum amount to buy shares?

Really, there is no minimum amount one could use to buy shares.

The prices of shares vary for different companies listed on the market. The minimum will depend on the type and cost of shares an investor is willing to buy. Consult your stockbroker, who will assist you in this area.

How do I find and monitor a share price for a company?

Shares prices of companies listed on the market can be found in the local newspapers in the business column or on the POMSoX Website at www.pomsox.com.pg . Up to the minutes prices can be obtained from the brokers or the Exchange.

How can I follow the performance of Listed Companies?

Companies listed on the Exchange are required under the Listing Rules to make timely announcements about their activities in order to ensure that a fully informed market is maintained. This information is sent to all investors via mass media.

After buying shares, what do I do with them or when can I sell them?

Once you purchase shares, you can sell them anytime you wish. Normally, investors buy shares at a lower price and sell when the prices are good or at a higher price than the price at which these shares were bought. People also sell their shares when they need extra funds for other needs. It depends on the investor’s preference for income, capital gain or security.

How many stockbrokers are there in PNG and who are they?

Currently we have only two licensed Stockbrokers, and they are BSP Capital and Kina Securities.

How often can I receive dividends?

Dividends are paid out to shareholders of a company after the company declares its profit for a financial year. Dividends are distributed evenly among all ordinary shareholders. Dividends are usually paid once a year. However, it must be noted that not all listed companies pay dividends. Before an investor buys shares in a listed company, he or she must check to confirm if the company does pay dividends and the frequency of these payments.

What is a Float?

The word float is used when a company seeks to raise capital by offering its shares to the public for the first time. The company must first submit details of its business and proposed share issue to the Securities Commission in a form of a prospectus. Once the prospectus is lodged and is registered and approved by the Securities Commission. It can then be forwarded to potential investors for consideration.

If you wish to invest in the company, you must first review the prospectus, fill in the attached application form specifying the number of shares you want to buy, and send it with your payment to the company or lodge it with your broker or agent.

Can I buy and sell shares on my own instead of using the Stockbroker?

No, only people who are licensed to act as a Stockbroker have access to the use of the POMSoX market. There was stringent rules that must be comply with in order to be granted a license by the Securities Commission and of course to be a member of POMSoX

What is a Share Registry?

All companies listed on the Stock Exchange must maintain a share registry. A Share Registry is an organization that registered details of buyers of shares in a company and issues new certificates to the buyers and removes the previous holders of shares in the company when these investors sell off their sell. All information from listed companies is distributed by the registry on behalf of the company to shareholders.