SiimplyLearn
Know how it works before you buy
Short, plain answers on orders, markets, fees and tax, and the books worth reading next.
How each order fills
Pick an order and drag its price. The line is an example of a share’s price over a trading day.
Sells once the price falls to your stop, at the market price then. Often used to limit a loss.
The stop was hit at 12:52. It sold at the next price, $92.89.
An example price path, not a real share. Order types available depend on the share and its exchange.
- 01
Three exchanges, two currencies
The ZSE trades in ZiG from Harare, the VFEX in US dollars from Victoria Falls, and US exchanges in US dollars from New York and Chicago. Each one takes its own wallet’s money, so convert first if you need to.
- 02
Bought is not yet settled
A trade settles when the shares and the money actually change hands. In the US that is T+1, one business day after the trade. The ZSE and VFEX follow their own local timetables.
- 03
Part of a share
On US stocks you can buy a fraction of one share, so a $400 share can be bought with $10. ZSE and VFEX shares are bought whole.
- 04
Dividends and the W-8BEN
Dividends are paid into your account on the company’s schedule. If you are not a US resident, US dividends may have tax withheld at your country’s treaty rate, and you fill in a W-8BEN form to claim it.
- 05
Risk and return travel together
Shares can rise further than bonds, and fall further. Spreading money across many companies and markets does not remove risk, but it means one bad result matters less.
Still wondering about something?
Read next
01 / 10
The Intelligent Investor
Benjamin Graham
The classic guide to value investing.
Lay your first stone
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