YOUNG market investors are increasing, partly due to initiatives by the Jamaica Stock Exchange (JSE) aimed at boosting awareness and education in stock market investing. Since its introduction, the JSE has observed a rise in the number of young investors.

“We have moved from two per cent to over 15 per cent of our population investing in the market. If one were to split that, 50 per cent of these new investors would be young investors,” said JSE Managing Director Marlene Street Forrest in an interview with the Jamaica Observer.

The trend became apparent after the introduction of the Junior Market, with the JSE being the first in the English-speaking Caribbean to do so, with initial public offerings (IPOs) attracting more younger people than older people, particularly those below the age of 40. JSE records also indicate that many young people are investing through joint accounts.

“There are so many younger people now investing and telling you what is happening on the market; they are the first on X (formerly Twitter) and other places to learn what is happening on the stock market,” Street Forrest stressed.

She also detailed the performance of the JSE Stock Market Game launched in 2008 for fourth- to sixth-formers. The virtual game introduces a specific amount of money for students to invest, allowing them to understand investment basics and make informed decisions. This initiative progresses to the tertiary level with the Young Investor Competition.

“There is a danger to persons coming to the market without understanding why they are coming. Getting them involved and excited is through the games,” she explained to the Caribbean Business Report.

To attract a broader cohort, the JSE conducts workshops and conferences free of charge to teach the basics of investing in the market. While young people are encouraged to sign up and understand market investment, accessibility is crucial. The JSE launched a mobile app and online training platform to cater to the preference of young people for digital access.

“Young people want to access the market in their own time and on various digital devices,” she explained. “Many young people have started accessing trade during the day and night through the online training programme.”

The JSE is extending efforts to catch young minds early by pushing the age limit further, starting from grade four for its primary JSE Stock Market game. The primary stock market game will be launched this year, with ongoing dialogue with education authorities to incorporate it into the curriculum.

“What is a problem that we sought to correct is that you cannot expect an 18-year-old to invest in the market unless they would have had prior knowledge, and we find that many of the times they would have left high school and sometimes, many times, the university or college, and they know nothing about the stock market,” said Street Forrest in explaining the reason for the introduction of the JSE stock market game. “You need to catch the young minds very early so it does not become a pain; it doesn’t become a transition at all. Rather than talking about painful transitions, it becomes a natural one.”

The JSE also plans to roll out a platform for market data, enabling young investors to use their phones for investments. As efforts to educate youth about investing are ongoing, Street Forrest offers some advice to potential young investors, urging them to prioritise and use their money wisely. She acknowledges that in the past, saving was strongly encouraged, and while not against saving, she encourages people to consider the stock market, buy fewer material things, and focus on investing.

“Over the long term, the stock market outperforms any other investment,” she said. “Buy into what you understand, continue to read financial statements, and get acquainted with the fact that you are a part of the company you are a shareholder in.”