01 / 12
What Does It Mean to Sell a Share?
📊 → 💰
You give up the share and receive money from the sale.
When you sell a share, you are transferring your ownership
of that share to another buyer through the market.
If you own 100 shares in a company and sell all 100,
you no longer own those 100 shares after the transaction
has been completed and settled.
Simple idea: Buying a share gives you ownership.
Selling the share means you are giving up that ownership.
02 / 12
Why Would Someone Sell?
Investors may sell shares for many different reasons.
Selling does not always mean that something is wrong with
the company.
- They may want to take a profit.
- They may need money for another purpose.
- Their investment goal may have changed.
- They may want to reduce the risk in their portfolio.
- They may no longer want to own that company.
- They may believe another investment is more suitable.
There is no single reason why investors sell. Your decision
should be based on your own investment plan and circumstances.
03 / 12
You Usually Sell Through a Broker
👤
You
→
🏦
Stockbroker
→
📊
Market
In a normal share sale, an investor gives a sell instruction
to their stockbroker.
The broker then submits the order to the relevant market
according to the applicable trading process.
This is why choosing and dealing with a properly authorised
stockbroker is an important part of investing.
04 / 12
You Need to Decide What to Sell
Before placing a sell order, you need to know which company
you want to sell and how many shares you want to sell.
Company
Which shares?
Quantity
How many?
Price
At what price?
You should check your investment records before submitting
an order so that you know exactly what you own.
A sell order should be based on a clear decision, not on
confusion or pressure from other people.
05 / 12
Setting Your Sell Price
📊
Current Market
→
💰
Your Sell Order
Depending on the order type and trading system available,
you may be able to specify the price at which you are
willing to sell.
A sell order is not automatically guaranteed to be completed.
There needs to be a suitable buyer and the order must meet
the applicable market rules.
A price you want is not necessarily a price you will get.
Market conditions matter.
06 / 12
There Must Be a Buyer
A share sale happens when your sell order can be matched
with a suitable buy order under the market's rules.
This is why you cannot simply decide to sell shares and
assume that the transaction will happen immediately.
The availability of buyers and sellers can affect how
quickly an order is completed.
Remember: Selling requires a buyer.
07 / 12
A Simple Zambian Example
Example: 100 Shares
Imagine you own 100 shares.
You decide to sell them at K12 per share, assuming
a buyer is available at that price and the order
is successfully matched.
100 shares × K12 = K1,200
The K1,200 is the gross value of the transaction before
any applicable brokerage fees, taxes or other charges.
The amount you finally receive can therefore be different
from the gross sale value.
08 / 12
Sale Value Is Not the Same as Profit
This is a very important difference.
K1,000
Original Cost
K1,200
Sale Value
K200
Difference*
If you originally paid K1,000 and later sell for K1,200,
the difference is K200 before considering transaction costs
and any applicable taxes.
*Important: Your actual investment return
can also be affected by dividends, fees, taxes and other
factors.
09 / 12
What Happens After the Sale?
📝
Order
→
🤝
Matched
→
✅
Settled
After a sell order is successfully matched, the transaction
goes through the applicable settlement process.
Settlement is the process through which the shares and money
are transferred between the parties according to the market's
rules and settlement timetable.
A trade being matched and the transaction being fully settled
are related but are not necessarily the same moment.
10 / 12
Fees Can Reduce What You Receive
💰
Gross Sale
−
💳
Costs
=
💵
Net Amount
When you sell shares, the gross value of the transaction
is not necessarily the amount that reaches you.
Depending on the transaction, there may be brokerage fees,
taxes, levies or other applicable charges.
This is why it is useful to understand the costs involved
before placing a sell order.
Always check the current fees and charges that apply to
your transaction with your broker and the relevant market
authorities.
11 / 12
Before You Sell, Ask Yourself These Questions
- Why am I selling?
- Has my investment goal changed?
- How many shares do I want to sell?
- What price am I expecting?
- Do I understand the order I am placing?
- What fees or charges will apply?
- What will I do with the money after selling?
Do not sell simply because you are scared.
Take a moment to understand what has changed and whether
selling fits your investment plan.
A good investor thinks about the reason for selling before
pressing the sell button.
12 / 12
🎓
Lesson Complete!
Well done! You now understand the basic process of
selling shares.
👤
You
→
🏦
Broker
→
📊
Market
→
🤝
Buyer
Remember:
Selling a share means giving up your ownership of that
share in exchange for the sale proceeds, after the
transaction is completed and settled.
Always understand your reason for selling, the order
you are placing and the costs involved.
Buying shares is only one part of becoming an investor. At some point, you may decide that you want to sell some or all of the shares you own. Understanding how a share sale works is therefore just as important as understanding how to buy shares.
When you sell a share, you are giving up your ownership of that share in exchange for the proceeds from the sale. Normally, you place a sell instruction through your stockbroker, and the order is submitted to the relevant market under its trading rules.
A successful sale also requires a suitable buyer. Your sell order may not be completed immediately if there is no buyer willing to transact at the relevant price or if other market conditions prevent the order from being matched.
For example, imagine you own 100 shares and they are sold at K12 each. The gross value of the transaction would be K1,200. However, K1,200 is not necessarily the amount you finally receive because applicable brokerage fees, taxes, levies or other charges may reduce the net amount.
It is also important to understand that the amount you receive from selling shares is not automatically your profit. You need to consider what you originally paid, transaction costs and other investment returns such as dividends.
In this lesson, you will follow the share-selling process step by step, from deciding what to sell and placing an order to matching, settlement and receiving the net proceeds.
Most importantly, you will learn why investors should have a clear reason for selling rather than making a rushed decision based on fear, rumours or short-term market movements.
