The stock market is a place where companies offer shares to public. What this means is that when you buy a share, you own a part of the company, in terms of any future gains or losses.

Its sort of like pooling money together to start your own company, but on a much bigger scale. And unlike your own company, the shares you buy are usually a very very small fraction of the total number of shares available.

In Singapore, a scripless system is used. What this means is that, unlike the old days where you will have a certificate whenever you buy shares in a company, all the shares you buy is accounted for electronically by The Central Depository (CDP).

However, you don't actually buy or sell shares through the CDP. Instead the trading of shares is done on an exchange. In the case of Singapore, it is the Singapore Exchange Ltd (SGX).

Even then, to make things more complicated, you are not able to open an account with the SGX. You would have to open an account with a member firm, or also known as a stock brokerage company.

So basically, to trade on the singapore stock market, you go to any of the brokerages(as listed on the links) and tell them you want to open an account. At the same instance, you would actually open an account with the brokerage firm, and also apply for an account on the CDP.

Very simple.

Or is it?

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