Step #1. Choose the broker’s office
Step #2. Enter into a contract with broker’s office
Step #3. Pay money into client account of the broker in Central Depository.
Step # 4. Give an order to broker’s office to buy stocks.
Step #5. Get the benefit.
You have decided to buy stocks with the help of “People’s IPO” Program and want to know how to do that? In this instruction we give the detailed description of each step of buying stocks and what pay attention on when you buy stocks of “People’s IPO” Program. So, let us introduce 5 steps of “People’s stockholder”.
To become “People’s stockholder” it’s necessary to buy stocks of companies which participate in “People’s IPO” Program.
Step # 1. Choose the broker’s office.
To make a good choice of broker’s office we recommend to pay attention on basic criteria of broker’s office choosing: license, work experience on market, company size, services charges.
Step #2. Entering into a contract with broker’s office
Before entering into a contract we recommend to read broker’s inner documentation and broker’s contract. To open an account you need to provide for broker your ID and sign the documents which broker needs to perform services.
After concluding the contract on broker services the subaccount will be opened for you to keep the valuable securities on personal account of broker’s office in “Central Depository of valuable securities” JSC.
Then broker provides you the requisites of your subaccount for valuable securities keeping and requisites of broker’s client account for paying by you money into “Central Depository of valuable securities” JSC.
Step #3. Paying money on broker client account into “Central Depository of valuable securities” JSC.
Please, pay attention that money for stocks buying should be paid on broker’s client account into “Central Depository of valuable securities” JSC according to requisites noted in the contract on broker’s services.
However, you should remember that you have to provide money on broker’s client account in “Central Depository of valuable securities” JSC before concluding of contract on “KASE” JSC.
Step #4. Giving a client’s order to broker to buy stocks
For stocks buying you fill a client application form, sign and present it for broker. When you present a client application form you have to also provide notarized application of your husband/wife on stocks buying approval or notarized application that you are not married. Application must be dated the date of submitting the client’s order. Once the broker has bought stocks for you, he will inform you about it.
Step #5. Get the profit
When the company, which stocks you have bought, pay the dividends, please, pay attention on that money are paid on client account of broker into “Central Depository of valuable securities” JSC. Broker, in his turn informs you about dividends accepted. Then money is transferred on your bank account according to your order and noted requisites.
Getting the profit is also possible when the price of stocks is higher than you have bought it. At this time money is transferred on client account of broker into “Central Depository of valuable securities”. Broker in his turn informs you about money acceptance for realized stocks. Then, according to your order money is transferred on your bank account in accordance with noted by your requisites.
What expenses does investor have?
When you buy the stocks with the help of “People’s IPO” Program you have to pay to broker (transfer-agent) commission from total sum of bought stocks. Different companies have different commissions. For example, in “Kazpost” JSC commission is 0,05 percent from deal sum, but not less than 1 MCI (monthly calculation index). Present time it is 1852 (one thousand eight hundred fifty two) tenge.
These payments can be imagined on example. Let’s assume that you bought stocks of “Kazpost” JSC for the total sum 500 000 (five hundred thousand) tenge. Broker will take minimal commission, which is 1852 tenge in this case. If you buy stocks for 4 000 000 (four million) tenge, broker commission is 2000 (two thousand) tenge.
If you decide to sell stocks which you bought in the framework of “People’s IPO” on exchange you have to pay commission of exchange besides broker commission. Its quantity depends on the deal’s size. If you buy stocks for less than 1 million tenge, exchange commission will be 100 tenge, up 1 million to 3 million – 150 tenge, up 3 million to 5 million – 200 tenge, up 5 million tenge – 0, 01 percent from deal’s size.
Broker’s and exchange commissions are paid by investors from each deal while buying as well as selling.