How to buy shares – A step-by-step guide

By Ephraim Ofori NUMOSUOR

Buying shares is one of the smartest and most sustainable ways to grow wealth over time. Yet, for many Ghanaians, the stock market still feels like a mystery reserved for the rich or the highly educated. In truth, anyone can own shares in some of Ghana’s biggest companies—right from the comfort of their home—with as little as a few hundred cedis. This article explains, in simple terms, how to buy shares in Ghana and begin your journey to financial growth.

Understanding what shares are

A share represents a unit of ownership in a company. When you buy shares, you become a shareholder—a part-owner of that business. Your money works for you as the company operates and grows.

Shareholders make money in two main ways:

• Dividends – periodic payments from the company’s profits.
• Capital gains – when you sell your shares at a higher price than you bought them.

In short, buying shares means investing in the success of the company—and benefiting from its growth.

Where shares are traded

In Ghana, shares are traded on the Ghana Stock Exchange (GSE)—the official marketplace where investors buy and sell shares of listed companies such as MTN Ghana, Total Energies, CAL Bank, Ecobank Ghana, and many more. The GSE operates under the regulation of the Securities and Exchange Commission (SEC), which ensures fair trading and protects investors.

Step 1: Choose a licensed brokerage firm – You cannot buy shares directly from the Ghana Stock Exchange. You must go through a licensed stockbroker—an individual or firm approved by the SEC to trade on your behalf. The full list of licensed brokers is available on the GSE or SEC website.

Step 2: Open a Central Securities Depository (CSD) account – Before you start trading, you need a CSD account, which acts like a bank account for your shares. This account safely holds your shares electronically instead of using physical certificates.

To open one, your broker will ask for:

• A valid ID (Ghana Card, Passport, or Driver’s License)
• Passport-sized photos
• Proof of address (utility bill or tenancy agreement)
• Tax Identification Number (TIN)

Once opened, you’ll receive a CSD number, which identifies you as a shareholder.

Step 3: Fund your account – To buy shares, you need to deposit money into your brokerage account. This can be done through bank transfer, cheque, or mobile money—depending on your broker’s system. Some brokers allow you to start investing with as little as GH¢100. You don’t need thousands of cedis to begin.

Step 4: Choose the shares you want to buy – Next, decide which companies to invest in. Take time to study their performance, profitability, and dividend history. You can get this information from:

• The Ghana Stock Exchange website (www.gse.com.gh)
• Financial newspapers
• Your broker’s market reports

Focus on companies that are profitable, consistent, and operate in growth-driven sectors like telecommunications, banking, energy, and manufacturing. Your broker can also advise you based on your goals and risk level.

Step 5: Place your order – After choosing a company, instruct your broker to buy shares on your behalf. You can either:

• Specify the number of shares and price you want (a limit order), or
• Ask your broker to buy at the current market price (a market order).

Once executed, you’ll receive a confirmation of the transaction and a record of ownership in your CSD account.

Step 6: Monitor your investment – After buying shares, keep track of their performance. The GSE publishes daily market summaries showing price movements and traded volumes. Avoid checking prices too often—short-term fluctuations are normal. Instead, focus on long-term growth. Many investors make the mistake of panicking when prices dip slightly, forgetting that shares are a long-term investment.

Step 7: Enjoy dividends and sell when ready – If the company makes profits and declares dividends, you’ll receive payments directly into your bank account. You may choose to reinvest them to buy more shares or use them as income. When the share price appreciates and you want to take profits, you can instruct your broker to sell your shares.

Step 8: Seek professional guidance – If you are a beginner, start small and learn as you go. Many brokers and financial institutions, such as Databank and the Ghana Stock Exchange, organize investment education programs to guide new investors. Attending such programs will help you understand market trends, avoid common mistakes, and make informed investment decisions.

Final thoughts

Investing in shares is one of the surest ways to build long-term financial independence. It allows your money to grow with the success of leading companies while earning your dividends along the way. The key is to start early, invest consistently, and think long term. You don’t need to be wealthy to buy shares—you simply need to be willing to begin. As the saying goes, “The best time to invest was yesterday; the next best time is today.”

>>>the writer is a Financial Economist, Research & Policy Analyst. He can be reached 0248803710 and [email protected]

The post How to buy shares – A step-by-step guide appeared first on The Business & Financial Times.

Read Full Story