Questions That Investors Should Ask

Asking questions, an important aspect of investment, is usually ignored by investors. The right questions could help you develop a better understanding of your investments, choose the right products and, most importantly, make informed investment decisions. A good stockbroker or remisier will always welcome your questions in order to serve you better. Since you will be investing your hard-earned money, it doesn't hurt to ask a few questions. Sometimes, questions that you may regard as too simple or “silly” may actually be the ones that lead you to invaluable information.

After you have decided that investing in shares will be part of your investment strategy, you are now ready to take the first step into stock market. All the initial requirements for you to trade are all in order. Your have opened a Central Depository System (CDS) and trading account, and have chosen a remisier. One fine day, you decide to call your remisier to place an order for purchasing shares. But before you start making your first order, do ask your remisier the following questions (as what we listed here is not exhaustive, you should ask more):

1. Are you licensed by the Securities Commission?

Hint: A licensed remisier would be able to produce a copy of his/her license to you. In addition, you can also call the Securities Commission at 603–6204 8000 (Licensing Department) to verify the authenticity of the license.

2. How does the stock market work?

Hint: It is important for you to know how the stock market works. Even though you are not expected to know as much as your stockbroker (although that will be ideal), it is useful for you to have clear understanding on how it works. Stock market rules, role of your stockbroker and what Bursa Malaysia does are some of the prerequisite knowledge that you should have.
Helpful link: Capital market institutions

3. What are the fees and charges of this investment?

Hint: Every investment has a cost to it. If you buy shares, you may want to ask your remisier, how much fees or commission you have to pay to buy the shares.