Why and how to invest?

Investing in the stock market means …

Investing in the stock market means investing in the real economy to become an active member and participate in the growth of companies. It is therefore a serious alternative to increase and diversify one's wealth and income. To succeed in investing in the stock market, it is necessary to have the right information and to resort to market professionals. There are many reasons to invest in the stock market. Some of these reasons are :

Diversifier ses actifs

Diversify your assets

Diversification is the best way to minimize risk. Investing in stock markets is an efficient way to diversify your financial assets with the possibility to invest in many listed companies.

Fructifier ses revenus

Increase your income

There are two main ways to increase your income by investing in the stock market: either through the capital gain (if any) that can be made on the stock sold or through dividends. The majority of controlled investments generate wealth by offering high returns over the long term.

Bien épargner

Smart saving

Investments in stock portfolios are savings made over the long term. By providing long-term performance, equities represent a privileged means of financing one's projects with a significant investment horizon.

Créer une source alternative de revenus

Planning for retirement

Investing in the stock market is a way to prepare for retirement.

La possibilité d’acquérir de nouvelles connaissances

The possibility of acquiring new knowledge & perfecting one's personal culture

Investing is a way to acquire new knowledge and enrich one's personal culture. The information on the subject allows to understand the functioning of the market and be better equipped to take the best decisions! And in order to do it right, it is necessary to accompany your stock market investments with documentation and information on a daily basis ( or training). After all, it is about money and savings. Investing in the stock market implies to feed one's knowledge in the matter, to perfect one's knowledge, to be curious and demanding in order not to undergo, but to be an active actor of one's savings.

To note

All our information concerning the reasons to invest in the stock market are generic in nature. It does not take into account the personal situation of the investor, nor does it constitute in any way personalized recommendations for transactions. Furthermore, this information cannot be considered as financial investment advice, nor as an incitement to buy or sell financial assets. The reader is solely responsible for the use of the information provided, without any recourse against the Casablanca Stock Exchange being possible. The Casablanca Stock Exchange shall not be held liable in any way for any error, omission or inappropriate investment.

How to invest in the stock market?

To be a successful investor, you only need to know and apply a few essential rules in order to manage efficiently your portfolio .

Set a goal for yourself

Do you want to receive a fixed amount on a regular basis? Do you wish to see your capital grow to secure your future and the future of your children?
Do you want to be able to have immediate access to your money or can you invest your savings on a  long-term basis? With the help of your financial advisor and by answering similar questions, you would be able to make the most appropriate investment choices.

Do not get into debt

The main goal of every investor in the stock market is to realize long-term capital gain and receive dividends. It is strongly recommended that money invested in the stock exchange should be exclusively funded by your savings.

Set long-terms goals

Stock market statistics throughout the world proved that investing in the stock market is always profitable over the long run.
However, in order to maximize your revenues , it is necessary to understand that the holding period can be extremely unstable depending on the type of investment chosen.
Never forget that time is the best ally of performance.

Invest steadily

In order to construct a portfolio, one needs to invest steadily. It is preferable not to invest your capital in one lump sum, but rather in regular installments so that you can benefit from market fluctuations. Do not forget that for a given amount, you will be buying a larger number of shares when share prices are lower.

Diversify your portfolio

Do not concentrate all your investments on the same sector. Your portfolio must include different securities in order to benefit from opportunities in several different business areas and diversify your risks.
Concentrate initially on four or five stocks to familiarize yourself with the functioning of the stock market and the stakeholders.

Accept the risks

The decision to buy shares on the stock market exposes you to changes in the prices of shares, which can rise or decline.
Therefore, you take a risk by investing in the stock market. Besides, the higher the risk, the higher the expected return.
Performance can be considered as reward for the level of risk taken.

Do not panic

Stock market investing is a matter of keeping one’s head. Well-informed investors and market professionals are more likely to sell during periods of strong performance (to realize capital gains in line with their objectives) and to buy when share prices decrease.

Be well-informed

Investing in the stock market is in a way guessing the future. It is therefore essential to collect a maximum of information about stocks – the company’s business activity, results, business plan etc. – to be in a position of making the right decision. Thus, it is highly recommended to be up to date when it comes to current stock market developments either by asking your financial advisor or by consulting the various specialized media.

Speak to professionals

In order to respect all the rules of stock market investment, one needs to speak to professionals. They will guide you according to your financial situation and investment objectives. They will thereby make sure you have all the information you need to be successful.

What do we mean  by an IPO?

An initial public offering means the listing of a portion of a firm’s shares on the stock market. The firm is known as the issuer.
The issuer may float on the Stock Exchange either by raising capital, by issuing new shares or by selling a portion of its share capital by offering already existing shares.

Who can take part in an IPO?

Any individual or corporate entity wishing to invest may subscribe for shares in an initial public offering, thereby becoming a shareholder in the company.

What are the rights we get by subscribing for shares in an IPO?
By becoming a shareholder, the subscriber will get several benefits :

  1.  The shareholder will receive a share of the company's profits known as a dividend based on the number of shares that he owns;
  2.   The shareholder will benefit from any capital gains arising from a rise in the company’s share price;
  3.   The shareholder will be investing in a liquid investment since s/he can sell his/her shares in the market at any time.

When should one subscribe for shares in an IPO?

Subscription for shares in an IPO is made during the subscription period, which is specified in the prospectus issued by the company before going public.
The subscription period generally lasts  3 to 10 business days. It may be closed early depending on the issuer’s request and money raised.

What should be known before subscribing for shares in an IPO?

Before subscribing for shares in an IPO, it is important that the subscriber reads the prospectus. This will enable potential shareholders to form their own opinion about the company and make their own decision about the investment opportunity.
The prospectus is available to the public:

  1.  At the the Casablanca Stock Exchange’s registered office ;
  2.  On the Casablanca Stock Exchange’s website ;
  3.  At the registered office of the firm making a public share offering ;
  4.  At branches of banks and brokerage firms participating in the offering as a member of the placing syndicate.

How to subscriber for shares in an IPO?

The first step consists in opening an account with a financial intermediary that can be a bank or brokerage firm.
The second step, which is the subscription, consists of placing a buy order with a member of the placing syndicate, which are brokerage firms and banks that are responsible for selling the securities.
The subscriptions are subsequently centralized at the Casablanca Stock exchange which oversees, on the date set in the IPO timetable, the allocation of securities and the generation of trades.
Delivery of securities and cash payment take place three business days following initial trading in the securities.

What is an order?

A stock market order is an instruction in which you authorize your financial intermediary to buy or sell shares on your behalf.

Who should you contact to place an order?

To place a stock market order, an investor must already own an account. It is the responsibility of the financial intermediary to execute the order as well as to manage the account, including collecting dividends. The intermediary also issues a  transaction notice specifying details of the order executed in terms of price, quantity, time...

What information is contained in an order?

For an order to be valid, it must include the information below :

  • Name of the sender (company or individual name);
  • Account number ;
  • Date ;
  • Security concerned ;
  • Buy or Sell ;
  • Number of shares to be bought or sold ;
  • Price;
  • The period of validity of the order

An order can either written (fax or signed order) or by phone (followed by a written confirmation).

At what price should the order be placed?

The price is probably the most essential point to consider when placing a stock market order. There are many types of orders. The most common type of orders are market orders, limit orders and best limit order). The exchange has recently introduced stop orders.

Market order
You may choose this formula if you definitely want your order to have priority over all other orders. The Order at Market has no price indication.

Your order will be executed at different prices according to market conditions.

  • For the buyer, the order will be executed at the best ask offers until the designated quantity is fulfilled;
  • For the seller, your order will be executed at the best bid offers, until the order is filled.

Best limit order

You can opt for this option when you definitely want your order to be executed at the best price upon its arrival.

  • If you are a buyer, the price at which you are willing to buy will be equal to the best ask available on the market sheet;
  • If you are a seller, the price at which you wish to sell will be equal to the price of the best purchase offer available in the market.


This formula allows you to master of the execution price.
When it is a buy order, the transaction will be executed at your price or less;
When it is a sell order, the transaction will be executed at your price or more.

The order at a limited price is executed totally or partially executed depending on the market conditions.

What is the validity period of orders?

The validity of an order A can be :
A Day:
The order expires at the end of the stock market session if it is not executed.

For a limited period :
It may be valid for a period of time ranging between 2 and 30 calendar days, as specified by the client.

Good until cancelled :
The order expires at the end of the calendar month or when the client issues a cancellation.

What happens to a stock market order ?

An order is subject to the following stages :

  • A buy or sell order is placed with a financial intermediary. If it is a bank, the order is automatically transferred to a brokerage firm ;
  • The order is sent to the stock market by the brokerage firm’s dealing agent. When the order is executed, a notice of transaction is sent to the client.

If it is a buy order, the client’s securities account is credited and cash account debited on T+3 (T being
the transaction Day date).

If it is a sell order, the client’s securities account is debited and cash account credited on T+3.