How share ownership works
A practical learning experience for first-time investors
Where are your shares recorded when you buy them?
When you buy publicly traded shares, you generally don't receive a paper certificate. Securities ownership is recorded electronically.
Many African markets use a Central Depository System (CDS) or a similarly functioning securities depository. To make a conventional trade, you generally need access to the securities depository arrangements used by that market. An individual account may be required, depending on the market.
These systems record securities holdings and support the transfer of shares when transactions occur. A CDS account isn't a personal bank account, and it isn't necessarily the same as a complete brokerage account.
How is this different from a U.S. brokerage account?
If you've invested through a U.S. brokerage platform, you may be accustomed to viewing investments, placing trades and managing funds through one interface. In many African markets those functions involve separate institutions.
| What you want to do | U.S. brokerage account | African securities market |
|---|---|---|
| See the shares you own | Brokerage platform displays your holdings. | A securities depository and its participating institutions maintain ownership records. |
| Buy or sell shares | Place an order through your brokerage platform. | A licensed broker executes the order. |
| Hold investment cash | Brokerage accounts may maintain cash balances. | Approved broker and banking arrangements handle money, separate from a CDS account. |
| Receive dividends | Usually credited through brokerage arrangements. | Paid through applicable company, depository and banking arrangements. |
| Receive sale proceeds | Brokerage handles settled sale proceeds. | Broker and approved payment institutions handle proceeds. |
| Review holdings | View holdings via your brokerage platform. | Use the participating institution or depository's available reporting tools. |
Investor education only. ACAF explains market information and access pathways; it does not recommend investments or execute transactions.