I have recently read a swarm of articles in the media that highlight the quantitative side of things.

That is, the increased number of listings, the increased PAYE, the increased GCT, the increased jobs, etc. These are all significant and repeated points over the last few years.

The benefits are substantial and continue to grow with the number of Junior Market listings increasing.

There are approximately 25 securities currently listed on the Junior Market. This is a huge number when one compares it to the Main (in terms of quantity) growth over such a short timeline of approximately seven years. In addition a number of the securities, in our opinion, were not known before listing — neither by society nor the traditional banks.

This means that Jamaica has a significant number of potentially unknown success companies, entrepreneurs and/or families — in manufacturing, distribution, and other sectors — that are waiting to improve the capital structure of their balance sheet and to contribute to our society.

I believe that there are some other non-quantitative variables that we should be talking about in regards to why the Junior should be extended and why it needs to be strongly supported by all public and private stakeholders.

1) The Junior Market improves the image of the national wealth opportunity, wealth creation of the Jamaica Stock Exchange (JSE) and the brand of the Stock Exchange itself.

2) It has the potential to create a larger middle class, and has actually been doing so quietly while building confidence in Jamaica.

3) It represents a continued game-changer — that you do not have to be rich to own stocks, and you have the opportunity to own growing companies and growing brands.

In my opinion the JSE brand has grown dramatically in the eyes of the wider audience in Jamaica and the younger generation since the launch of the Junior Market .

A number of years ago in SSL publications and presentations, I proposed that a JSE 100, or another branding number, could be very powerful for the Exchange, which is now a public entity. The reasoning was based on examples of first-world financial markets which make their exchanges tangible with their marketing, which in turn is marketed locally and globally.

Practically, without the Junior and its historical listing rate and the momentum that this has created, it would be difficult to see this idea become a reality for Jamaica.

From a global perspective, one needs to think about the NASDAQ-100 and DOW 30 examples, and the functions that these create not only for investors, but for academics as well.

Our children could learn about the JSE 100 in their finance courses at the universities, use it comparatively to other indices in global financial markets, use it as a benchmark, track its growth and use it as an indicator.

Our team had the benefit and experience to work with AMG Packaging & Paper Company Ltd, Caribbean Cream Ltd and the Jamaica Stock Exchange itself, (where, for disclosure, I serve as a director) in their initial public offerings (IPO), listing some of these companies on the Junior Market which has now created great success for them.

A glaring takeaway for the reader is the wealth creation or market capitalisation increase in each case, and the benefits to the founding shareholders and newly invested shareholders.

Let us use the case of AMG. With approximately 102 million shares outstanding and a listing price of $2.88/share, the Company’s valuation on IPO was approximately $295 million. As at the close price on February 5, 2016, the Company’s public valuation is now $1.53 billion. We all focus on these variables and the increased profit which has driven this increased stock price as well as the other tax benefits to the policymakers.

Underlying story

But there is a major underlying story that is missing from the public. That is, the building of confidence in our people, the improvement in their families, the growth of middle management in society, the accruing wage improvement, and the overall upliftment and confidence that this creates in oneself.

An interesting phenomenon to observe is the effect on middle management that the evolution of a private company has in becoming a Junior and its post-IPO journey.

We have viewed individuals in management roles who were previously not confident in themselves. “I cannot do public speaking, I cannot do financial reporting on time to meet these new requirements, I cannot speak at an Annual General Meeting (AGM) to shareholders, I cannot have a factory floor meeting with all staff, and I am not comfortable attending that function periodically or annually” are some examples of phrases heard from middle management in private companies.

What a difference becoming a listed company on the Junior Market has made! All of these “cannot” slogans in a middle manager’s mind have now become, “I can” along the journey and post journey.

In some cases, members of middle management have been promoted to general manager or managing director. Middle management is now exercising, health has improved. They are making PowerPoint presentations to staff and to other managers and even directors. They can afford to take their families to dinner or on an outing. Their individual outlook on life has improved as the Company is now committed to the Junior Market and has improved. Jamaica and our people are progressing.

This is not an overnight success. Think of the Junior Market as coaching a middle manager through mock presentations in a boardroom. The quality time spent in mentoring middle management and the positive messaging that management in turn passes on to their family and other members of the community is priceless.

It is clear through observation of these qualitative factors, that the Junior has played a significant role in the livelihood of the staff of the listed companies.

Recently, I have had the privilege of speaking at many different forums. At a Teacher’s Day session for Jonathan Grant High School it was amazing to see how excited 100-plus teachers were about the information on the stock market locally and globally. Let us as a people not underestimate how smart our society is with investing, even though the information may be limited.

In another example, in being pulled over at a checkpoint, a police officer asked my profession. I responded that I was a stockbroker. Admittedly, sometimes I wonder what to say here — am I a stock broker, like do I take inventory levels or take stock? Or do I give financial advice? Or, if I say I am a director do I direct traffic? The point is : financial jargon and business jargon connect minimally.

A common comment is, “Mr. Croskie, but stock is for rich people,” so we have a long and entertaining dialogue about pensions, investing… and then, BINGO! What connects? The Junior Market. I said, “Sir, buy things you love,” and we discussed price increases. “Do you own shares in LASCO, do you own shares in Kremi?” And then finally, “Ah, I get you,” he understood.

The connection of new investors and the power this has long-term for Jamaica is grossly understated. It seems, in some cases, that new investors to the market are more connected to the companies listed on the Junior Market and the brands that they represent than the older brands on the Main. In some instances, our older brands are linked possibly to the rich man, and not connecting with the example of a teacher or police officer.

As Jamaica continues to transition under numerous reform programmes and wealth opportunities continue to present themselves for the small man through the Junior Market, it seems illogical to eliminate this avenue of wealth creation for society.

Mark Croskery is president and CEO of Stocks and Securities Limited