FAQs

The Stock Exchange is a place of exchange, where financial securities are bought and sold. It allows the transfer of liquidity between economic agents through the purchase and sale of securities. It is a component of the financial market.

A share is a property right representing the capital of the issuing company and giving the right to dividends from the latter. It also makes it possible to express an opinion (voting rights) on the management of the company during general meetings of shareholders. The share is issued upon creation of the company and, subsequently, on the occasion of capital increases.

A bond is a debt security and gives rise to interest (or coupon) payments. It is a negotiable instrument that materializes a part of a loan from the issuing entity.

An FCP is an undertaking for collective investment in transferable securities (UCITS). It allows the investments of several investors to be pooled. The fund defines its investment policy and strategy. Each fund has characteristics such as a risk profile or a level of return that will serve to guide the investor. The investor is also called a “unitholder” and holds a share of the Common fund in proportion to the amounts he has invested.

This is the value of a financial security at any given time. It is determined according to the supply and demand of the security. Other factors can influence this price, making it difficult to anti

Market capitalization represents the valuation at market price of a listed company. It is obtained by multiplying the number of shares of the company by the market price. It is used as a determinant of the size of the company.

The financial statements of listed companies are available on the BRVM website.

A rating agency is a private company whose main activity consists of assessing the ability of debt issuers to meet their financial commitments.

An investment club brings together individuals who, in order to learn about stock market management, build a common portfolio of securities through staggered contributions.

A SICAV is a variable capital public limited company whose sole purpose is the management of a portfolio of securities, whereas a FCP is a co-ownership scheme for securities. This results in distinct administration and management methods.

It is the measure of the daily fluctuation in the price of a security over a given period. This measure is generally represented by the standard deviation of the daily price fluctuations of a security over one year.

Any legal entity as well as any individual can have a securities account. Simply contact an SGI and have the minimum amount required to open an account.

 It is the market where securities are created in exchange for capital during:

• an initial public offering (IPO)
• a bond issuance
• a capital increase

It is the market on which economic agents exchange the securities they hold in their portfolio. It is the second-hand market for securities.

The two main derivatives markets are:

• The over-the-counter (OTC) market, which directly connects two private parties where each participant bears the risk of default by their counterparty. This market offers great flexibility in the structuring of non-standardized products.
• The regulated (or organized) market, where companies define standard products and ensure transactions through a clearing house, as well as managing default or counterparty risk.

  The BRVM Prestige compartment is reserved:

for the flagship securities of the market. Companies applying for this compartment must demonstrate, among other things, a minimum of 10 years of activity, a market capitalization of at least 50 billion FCFA, and a free float of at least 20% of capital, corresponding to a minimum of 4 million securities.

The BRVM Principal compartment is intended: 

to the companies with a minimum market capitalization of one billion FCFA, a free float of at least 15% of capital, and certified financial statements for the three financial years preceding the application.

The BRVM Growth compartment is designed to:

welcome SMEs and companies with high growth potential.

An auction means that the issuer of bonds conducts a type of auction for the bonds concerned.

SPVs (Special Purpose Vehicles) are financing vehicles created in the context of securitization transactions. Their purpose is to acquire receivables (for example, a bank's mortgage loans), and then issue "units" representing these receivables, which are resold to investors.

Un ABS (asset-backed security) , en français titre adossé à des actifs, est une valeur mobilière dont les flux s'appuient sur ceux d'un actif ou d'un portefeuille d'actifs. La titrisation est le principal vecteur de création de ces actifs.

An underlying asset is an asset on which an option or, more broadly, a derivative product is based. It can be financial (shares, bonds, Treasury bills, futures contracts, currencies, stock market indices, etc.) or physical (agricultural or mineral commodities, etc.).

A commercial paper is a negotiable debt instrument (NDI), a form of credit between companies, meaning that companies in need of cash will themselves issue commercial papers that will be purchased by other companies that have cash surpluses.

A financial rating agency is a body responsible for assessing the risk of non-repayment of debt by a State, a company or a local authority. It produces, on an indicative basis, tools that estimate insolvency risks.

The nominal value of a security (transferable security: share, bond, etc.), also called face value, is the value set at the time of issue.

A futures contract is a firm commitment to deliver an underlying asset at a future date under conditions defined in advance. Unlike a forward contract, a futures contract is standardized to be traded on an organized futures market.

A swap, or exchange contract, is a financial derivative product. It is a contract for the exchange of financial flows between two parties, which are generally banks or financial institutions.

Volatility (in finance) is the magnitude of variations in the price of a financial asset. It serves as a parameter for quantifying the return and price risk of a financial asset. When volatility is high, the possibility of gain is greater, but so is the risk of loss.

To invest in the stock market, you must open a securities account. This account allows you to domicile the securities you buy on the Regional Stock Exchange of Securities (BRVM) of the WAEMU. From your securities account you can invest your money in several products: Shares, Bonds, or Mutual Funds.

There is no limit to start your investments in the stock market. You yourself define the amount to invest according to your savings possibilities or your available resources. However, it is advisable to invest the resources that you will not need in the short term to take full advantage of the returns offered by the market.

If needed, you can withdraw some or all of your money. If you have the securities in your account, all you have to do is give an order to sell the securities you hold in the portfolio. After the execution of the order, the proceeds of the sale may be withdrawn by any means (check, bank transfer, money transfer).

On the BRVM market, the liquidity of your investments (cash withdrawals) is ensured by the listing of the securities. To withdraw part or all of your investment, simply give an order to sell the securities you hold to FGI and the proceeds of your sale are available 3 days after the execution of the sell order. The corresponding amount is placed in the liquidity balance on your account and you can withdraw it by check or by a bank transfer.

FGI provides you with an online platform to follow the evolution of your portfolio. It allows you to have in real time 24 hours a day:

• – the appearance of the wallet
• – valuation of the portfolio
• l’historique de vos mouvements
• les ordres transigés

Upon presentation of the documents attesting to the death, FGI checks the quality of the heirs with the Notary or the principal, supported by the documents issued by the competent courts, determines the value of the securities portfolio and transfers everything to the designated accounts. by the beneficiaries or the notary in charge of the succession.

Orders sent to FGI are executed according to the regulations in force on the BRVM market, which stipulate that payments are made on D + 3 working days. So if you buy stocks today, the stocks will be available in your portfolio in 3 days. Likewise, the proceeds from the sale of your securities will be received within 3 days.

All you need to do is send a securities transfer order to your bank or your SGI which must carry out the transfer in connection with FGI and the DC / BR. Please notify us for a better follow-up.

At the BRVM, there are three main indices: the BRVM Composite, the BRVM 30, and the BRVM Prestige:

The BRVM Composite is a general index that takes into account all companies listed on the BRVM.

The BRVM 30 index groups the thirty most traded securities over a quarter.

The BRVM Prestige groups all securities listed on the Prestige Compartment.