The Trinidad and Tobago Stock Exchange
The main stock exchange in the Republic of Trinidad and Tobago is the Trinidad and Tobago Stock Exchange (TTSE). In the Caribbean region it is rated as the leading stock exchange catering specifically to the strong financial position of majority of the Trinidadian and Tobagonian companies. Its position as a member-state of CARICOM (Caribbean Community trade forum promoting economic integration and cooperation among member countries) allows many companies from Barbados, Eastern Caribbean Securities Exchange and Jamaica to cross-list their stocks onto the TTSE. On March 18, 2005, in line with global trends, the TTSE replaced the manual open outcry system with the Horizon Electronic Trading System.
The Trinidad and Tobago Stock Exchange: A Great Way to Learn the Art of Investing
In 2002, Trinidad and Tobago experienced growth at a rate of 3.2%. It was the ninth consecutive year of a growth period that followed an economic decline. Five Trinidad and Tobago companies listed with the Trinidad and Tobago stock exchange helped switch the tide to a more favorable financial picture. The following businesses are worth considering if you want to invest in companies in this Caribbean region.
- D’aguilar Gold Limited
- Dakota Mining Corporation
- Falcon Ventures Inc.
- Paladin Resources Limited
- Falkland Gold and Minerals Ltd.
While we often think of Trinidad and Tobago in terms of tourism, the country is also the base for companies that specialize in the development of petrochemicals, the production of metals, and the exportation of products. The country, making up two distinct islands—Trinidad and Tobago—represents diversified products in various sectors, especially in manufacturing, tourism, and agriculture.
Because the two islands have experienced unprecedented growth over the years, the country has realized trade surpluses as well. That has happened, even though the country has had high import levels due to industrial expansion and increased consumer demand.
In addition, Trinidad and Tobago is ranked as the fifth larger exporter of liquefied natural gas (LNG) in the world. Most of its stores goes to the U.S. (about 65%). This activity alone has led the country to change its oil-based sales to a gas-based economy. The Trinidad and Tobago Stock Exchange primarily represents stocks in the distribution, transport, construction, communications, and manufacturing fields.
The GDP and Purchasing Power
The Gross Domestic Product or GDP tells you how Trinidad and Tobago has flourished over time too. With respect to the GDP, purchasing power parity came to $9.41 billion with a real growth rate of 5% in 1999. The GDP, per capita purchasing power parity was $8,550. Sectors that added to this dollar number include the following:
- Agriculture – 2%
- Services – 54%
- Industry – 44%
Types of Agricultural Products Produced in Trinidad and Tobago
Trinidad and Tobago produces many agricultural products in the form of the following:
In 2008, the country exported $2.4 billion in products, with the main products being petroleum and petroleum-related items, steel products, fertilizer, chemicals, cocoa, citrus, sugar, flowers, and coffee.
Exports coming out of Trinidad and Tobago mainly ship to the U.S. the European Union (EU), CARICOM (the Caribbean Community), and Central and South America. The company receives imports of machinery, manufactured goods, transportation equipment, and food, all worth billions of dollars annually. The republic also partners with the U.S., Latin America, the EU, and Japan in the import sector.
Benefits of Investing in the Trinidad and Tobago Stock Exchange
Because of its rich economic climate and affiliations, Trinidad and Tobago can help stock investors realize significant gains on the Trinidad and Tobago Stock Exchange (TTSE). By using the Trinidad and Tobago Stock Exchange, investors have the opportunity to access some of the most profitable stock shares in the region. You can also experience the following benefits as a TTSE investor:
- You can earn passive income from dividends.
- You can receive money from share price increases.
- You can able to enjoy a hedge against inflation.
- You can use your shares as collateral to obtain loans from financial institutions
Go through a Broker to Access the Trinidad and Tobago Stock Exchange
You can trade online on the Trinidad and Tobago Stock Exchange. However, to do so, you need to go through a broker. The TTSE has established an online platform for trading called TOP (trading online platform.) By using TOP for the activity, you can realize several advantages, including the following:
- Manage all your trading accounts in one place online
- View real-time market actions, as they happen – such as stock processing and trade volume
- Manage your trading funds, or add them to your online account
- Place orders during market hours online – from Monday to Friday from 9:30 a.m. to 12:00 p.m.
- Check you statements easily, day or night.
Placing a Limit Order
To open an online account on the Trinidad and Tobago Stock Exchange, again, you must contact a brokerage firm so you can execute trades. When placing orders through the Trinidad and Tobago Stock Exchange online, you will use a Limit Order. This order allows you, as an investor, to specify a price for buying or selling stock online. A Limit Order is designed to safeguard customers from quick changes in market prices. However, there is always a risk that a broker cannot execute the order.
Just remember, as with any investment, you will always carry some type of risk when investing in or trading stocks on the Trinidad and Tobago Stock Exchange. Regardless of the method used, you can risk financial loss when investing in securities. If you are a new investor, you need to understand the basic principles of investing in stocks, and know your own personal tolerance for risk. You should know this info before trading any security. Not only will it protect you from making errors while trading, it will help you adapt more easily to fluctuations in the stock market.
While you can get involved in online trading, you might also direct your resources, as a small investor, into an equity-based mutual fund – a fund that cover Trinibad and Tobago stocks. The idea, when you first begin is to think big but invest wisely, or in small amounts.
You should also consider investing your money in a DRIP (dividend reinvestment plan) if you can. When you invest your money this way, you, again, are making the most of the equity you have placed in your stock holding. This account is offered by individual stock companies, and is an excellent way to save for retirement. With this plan, what you earn in dividends is reinvested in the stock. Therefore, instead of receiving cash dividends, the amount that is earned goes back into the stock, so you can slowly build up shares of stock.
So, how do you want to invest in Trinidad and Tobago. Outline a plan and make sure you have a diverse portfolio if you plan to buy stocks individually. Doing so will help you weather any economic storms that may blow your way. Make sure your portfolio includes stocks that do well when economic times are good as well as stock picks that hold up during gloomier times. Talk to your stockbroker about the stocks you might add to your portfolio. He or she can lead to you down the right patch so you can realize your dreams for retirement planning and investing.