What are securities?

Securities are issued by companies or other entities, which represent rights and duties, and can be bought and sold in particular on Stock Exchanges.

What kind of Securities are traded on the Mozambique Stock Exchange (BVM)?

The following securities are listed on the Mozambique Stock Exchange:

• Shares
• Bonds
• Commercial paper

What are Shares?

Shares are securities that represent the share capital of a company.

A share confers on its holder the ownership of the corresponding portion of the company, its profits, but also losses.

What are the benefits of being a shareholder in a company?

Shares of a company may be:

• A source of profits for their holders;
• A form of savings;
• Bought or sold on the market, generating profits as a result of these transactions;
• Used by their holders as security against bank loans.

What are bonds?

Bonds are representative of medium and long-term loan securities issued by companies or by the State to finance its expenses in a given period of time.

Owning bonds of a company or other entity means being the creditor of the issuer, thereby having the right to receive interest on a regular basis, and to repay the principal at the end of the loan term.

What are the benefits of being a bondholder?

Bonds:

• Represent a safe source of income;
• Allow for more precise financial planning, in order to reach predetermined objectives, since interest is pre-established;
• Provide a source of savings for the future;
• Can easily be bought or sold on the market.

What is commercial paper?

Commercial paper has the same characteristics as bonds, the difference being that commercial paper is issued for terms not exceeding one year, usually to finance companies' cash deficits.

How can securities be bought or sold on the stock exchange?

In order to purchase or sell securities, investors must contact StockBrokers (Banks authorised to carry out stock exchange transactions) to give their stock market orders (purchase or sale instructions), indicating the quantity of securities for purchase and / or sale and their prices.

Where is the Mozambique Stock Exchange?

Mozambique Stock Exchange is located on:

Av. 25 de Setembro, 1230,

5º andar, bloco 5 Prédio 33 Andares

Maputo, Polana Cimento