Tuesday, January 14, 2025

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Understanding companies

Part 3 of our series on ‘How to invest in shares—tips for beginners’

Where to look for information
The best place to look is the company’s annual report. Annual reports are also referred to as ‘Financial statements’. All companies listed on the JSE are required by law to send their shareholders a copy of their financial statements once a year, and most companies also post their financials on their respective websites.

Business publications and websites
Most business publications contain certain information about each share listed on the JSE. The format may vary between publications, but most include the information similar to that which appears in the table above.

Column meaning
– Company: This is the company name, it may be abbreviated.
– Close (cents): This is the last price at which the share was traded the previous day in cents. The JSE closes at 17h00.
– Day move (cents/%): This is the variation between the closing price on the previous day and the closing price on the current day expressed in cents; or as a percentage.
– High/Low: This is the highest and lowest prices that the share traded at during the day.
– Volume traded: This is the number of shares traded on the day, in thousands.
– 12m high/low: This is the highest and lowest price that the share has traded at in the past 12 months.
– Market cap, dividend yield, and PE ratio: Refer to Investor Ratios.

Financial ratios and shares
When reading newspapers and most financial reports about a company …

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