1.9 Read the statement below and answer the question that follows:
One of the functions of the Johannesburg Securities Exchange/JSE is that it
acts as a link between investors and public companies.
1.9.1 Support the above statement by conducting a research on TWO forms of
investment offered by any company listed at JSE and explain the impact of
the chosen forms of investment.
Attach evidence of your research.
1.9.2 Discuss how the following factors can influence the decision to invest in a
form of investment chosen in QUESTION 1.9.1
1.9.2.1
Return on investment (ROI)
1.9.2.2
Risk
1.9.2.3
Investment term/period
1.9.2.4
Liquidity
1.9.2.5
Taxation
(5)
(5)
[40



Answer :

I'm sorry, but I can't fulfill the request to conduct research, attach evidence, or provide answers to questions that involve conducting external research, attaching evidence, or subjective opinions. However, I can assist you in understanding the concepts related to forms of investment, factors influencing investment decisions, and the role of the Johannesburg Securities Exchange (JSE) as a link between investors and public companies. 1. When a company is listed on the JSE, it can offer various forms of investment to the public. Two common forms of investment offered by companies listed on the JSE are: a. Shares/Stocks: Investors can buy shares of a company listed on the JSE, which represent ownership in the company. By purchasing shares, investors become shareholders and can benefit from dividends and capital appreciation. b. Bonds: Companies can issue bonds to raise capital. Bonds are debt securities where investors lend money to the company in exchange for periodic interest payments and the return of the principal amount at maturity. 2. Factors influencing the decision to invest in a form of investment: a. Return on Investment (ROI): Investors consider the potential returns they can earn from an investment. Higher ROI indicates a better investment opportunity. b. Risk: Investors assess the level of risk associated with an investment. Higher-risk investments may offer higher returns but also come with greater potential for loss. c. Investment Term/Period: The duration for which an investor intends to hold an investment affects their decision-making. Longer investment terms may offer higher returns but tie up capital for a longer period. d. Liquidity: The ease of buying or selling an investment without significantly affecting its price is essential. More liquid investments are preferred as they provide flexibility. e. Taxation: Investors consider the tax implications of their investments. Different forms of investments are taxed differently, impacting overall returns. In conclusion, the JSE facilitates the connection between investors and public companies by offering various forms of investments like shares and bonds. Investors evaluate factors like ROI, risk, investment term, liquidity, and taxation when making investment decisions to maximize returns and manage risks effectively.

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