Individuals and institutions now need between $5 billion and $10 billion to invest on the Zimbabwe Stock Exchange via stockbrokers, up from $500 million required mid-December 2007, and $1 billion at the beginning of this month.
Brokers last cited the high cost of shares, and that of handling transactions, as the principal driver of increases in the minimum investment amounts.
The steep increases virtually sideline the low-income earners from investing on the stock market, save through unit trusts.
Brokers argued that equity investments were largely bankrolled by a few dollars saved in the bank, now these type of savings had disappeared leaving only a few individuals and institutions with sufficient financial muscle to engage in equity trades.
Investors are allowed to buy a minimum of 100 shares in any counter on the ZSE.
Post published in: Economy