Since MCO 1.0 in March 2020, many Malaysians began discovering stocks. Many started opening CDS accounts so as not to miss out on stock opportunities. But do not take it lightly. If you simply follow others blindly, it can lead to significant losses. You might end up saying stocks are a scam. That is why you need proper knowledge before you start investing in stocks.
Stock Opportunities: What Are Stocks?
A common question people ask is: what exactly are stocks? A stock represents an ownership stake in a company in the form of equity. Stocks that can be owned by the public are shares of companies listed on Bursa Malaysia. These companies are typically incorporated as "Berhad" entities.
Stocks Are Part of Our Daily Lives
You probably fill up petrol at either PETRON or PETRONAS before heading to work. You use electricity and pay your monthly bill to TNB. Many of us have ASTRO at home. When it comes to cars, most Malaysians drive either a PROTON or a PERODUA. The reality is that every day we deal with or use services from the companies mentioned above. That is why I say stocks are part of our daily lives — whether we realise it or not, we interact with companies listed on Bursa Malaysia.
Did You Know These Companies Are Traded on Bursa Malaysia?
Petronas petrol stations are managed by PETDAG (Petronas Dagangan), while PETRON stations are linked to PETRONM shares. ASTRO and TENAGA (TNB) are also listed. PROTON is a product of one of the subsidiaries under DRB-HICOM. Clearly, we are surrounded by companies listed on Bursa Malaysia. You may simply not have been aware of their presence on the stock exchange.
Stocks Are a Form of Business
Why do I say stocks are a form of business and a genuine opportunity? Because you can become part of a company without having to manage it — this is known as being a "SHAREHOLDER". When you buy shares of a company, it means you own a portion of that company''s business. For example, if you buy shares of ABC Berhad and ABC Berhad makes a profit every quarter, investors will gain confidence in the company. This attracts more buyers, which drives up the share price. When that happens, the value of your holdings increases — this is known as "CAPITAL GAIN". On top of that, you can also receive "DIVIDENDS" from stocks. This is the business aspect of stocks. You buy shares of a company and receive returns in the form of capital gain or dividends.
Conclusion
Stock investing is a form of high-risk investment. However, you can enjoy handsome returns on your stock investments when done right.
Therefore, you need to be wise and take the first step to learn about stocks with Mahersaham. Mahersaham will always help you become a great trader.
You can read related articles on learning stocks at the Mahersaham blog for more information.
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FAQ: Stock Opportunities & Investing in Bursa Malaysia
What is Bursa Malaysia and how do I start investing?
Bursa Malaysia is Malaysia''s stock exchange where publicly listed companies trade their shares. To start investing, you need to open a CDS account through a licensed broker — this allows you to buy and sell shares of companies listed on Bursa Malaysia.
What is the difference between capital gain and dividends?
Capital gain is the profit you earn when you sell your shares at a higher price than what you paid. Dividends are cash payments distributed by a company to its shareholders from the company''s profits. Both are ways investors earn returns from stock investments.
Do I need a lot of money to start investing in stocks?
No. You can start investing in Bursa Malaysia with as little as a few hundred ringgit. The minimum trading lot is 100 shares, and many quality stocks are available at affordable prices. The key is to start with proper knowledge rather than a large sum of money.
Is stock investing considered a scam?
No — stock investing through Bursa Malaysia is legitimate and regulated by the Securities Commission Malaysia. The perception that stocks are a scam usually comes from people who invested without proper knowledge and suffered losses. With the right education and discipline, stock investing is a proven method to build long-term wealth.
