Stock Broking Services
Philippus de Witt (Pty) Limited is a stockbroking firm in Johannesburg South Africa.
Philippus de Witt (hereafter refered to as PPM) is a Member of the JSE limited offering a broad range of stockbroking services in Johannesburg South Africa. As a family business we are dedicated to the provisioning of premium personalised service to our diverse range of clients. Our personal approach adds value to clients since 1983.
We are in the business of giving you low cost access to the South African stock market.
Our office is situated in Linden, Randburg, Gauteng.
Investing in Shares
What are shares?
Companies have three choices when they want to raise money to grow their business: to borrow from a bank, issue bonds or issue shares. The key advantage of issuing shares is that the company doesn’t need to pay back the capital amount or make interest payments. Funds received from the selling of shares are used by the business to expand and finance projects etc.
If you own a share, you own part of the company. Someone who owns one or more shares is called a shareholder. Shareholders can receive dividends if a company’s board of directors declares that the company has made sufficient profits and that some these profits should be returned to shareholders. A share in the company gives you the right to vote on decisions affecting the company. You can also call a share an equity or stock.
Who can invest in shares?
Anyone can purchase shares on the exchange and any amount can be invested. Note however that trading can only occur via a stockbroker. Stockbrokers are licensed members of the stock exchange who trade securities on behalf of clients as investors cannot invest directly on the exchange. They also provide advice on stock exchange investment issues. The fees charged on share transactions include brokerage charges, VAT on brokerage charges, securities transfer tax and settlement fees. Transaction costs also include an Investor Protection Levy (IPL).
Why invest in shares?
- Shares have shown the highest returns in the long term, outstripping other assets such as bank deposits and property.
- Investing in shares gives one a good chance of beating inflation. South Africa’s inflation target is between 3% and 6%. To make a profit, the return on investment should, therefore, be greater than 6%. Research done indicates that the return on shares on the JSE has in most cases exceeded this percentage for the last hundred years.
- The value of shares would in the longer term often increase. Generally one would sell shares for more money than you paid for them.
- Some companies pay a portion of their net profits (return) to shareholders – this is called a dividend.
- Investing is a good way of providing for retirement or unexpected expenses.
When buying different companies shares you are diversifying (getting a variety) your portfolio of shares and also limiting your risk of losing your money.
Are there Risks?
Investing allows you to make good profits if managed correctly, but you must be aware there is the risk of losing money in any investment. Markets can be unpredictable and volatile, and you will lose money on some trades, it is the nature of the game. Economic & political events can also influence the share prices.
- Only invest money that you don’t need.
- Determine your risk profile:
- Investing or speculating
- Long term or short term investment horizon
- Objective of investing in the stock market
- Conservative, moderate or aggressive investor
- Educate yourself on the stock market and do research on the companies that you would like to invest in.
- Speak to a stock broker
In our experience online trading results in 70% of clients losing money and then losing hope. For this reason we don’t offer online trading.
If you are an experienced trader, please contact us to discuss your options.
We offer our clients the opportunity to have their share portfolios managed by one of our experienced portfolio managers.
Should you have enquiries, please contact Martie du Bruyn on 011 482 4525 or
Have you been comparing brokerage fees?
Are you looking for a good deal - but unsure?
Here are some important things to keep in mind:
- Are your equity holdings and excess cash protected in case of a broker default?
- Are you aware that some service providers do not pay interest on your margins and cash balance?
- Are you sure there are no further hidden costs?
- Are you going to be subjected to and forced to talk to a computer?
- Are you able to speak to a qualified and experienced trader who understands you & the market?
At Philippus de Witt (Pty) Limited we pride ourselves in understanding the needs of our clients. Why not give us a call now and join our family of satisfied clients.
Call us on (011) 482 4525 or
Meet the Team
“Phone us at any time to trade. We are here to help you.”
- We provide a personal service, you are not just a number. Why don’t you visit us at our offices for a chat and a coffee?
- Your trading statements are available to you online. We provide you with your own password and log-in details which will allow you to view all your trades from the comfort of your computer. Give us a call for more details. Need to transfer some profits..? Your cash funds are immediately available to you.
- Any questions. Something you don’t understand. Phone us…you will find a professional person willing and able to answer any query.