Expert: Junior Stock Exchange step in right direction for Guyana

With plans to establish a junior stock exchange market in Guyana, Managing Director of the Jamaica Stock Exchange, Dr Marlene Street Forrest, believes the move is a step in the right direction.
Speaking during an interview with financial analyst Joel Bhagwandin on the television programme Ignite Finance, Dr Forrest stated that, based on her experience, the development of junior markets is a powerful tool for developing economies.
Dr Forrest is one of the most influential voices in Caribbean finance, known for her commitment to financial education and for being a strong advocate for market growth across the region.
She was in Guyana during the “Money Week” of activities hosted last week in collaboration with the Guyana Stock Exchange, as part of efforts to deepen regional capital markets and partnerships.

“The junior market is an excellent tool because if you disaggregate in terms of Guyana, Jamaica, or all over the Caribbean, most of the companies are small and medium-sized. And those are the companies you want to attract for access to capital. Especially in Guyana, where economic growth has taken off– and these companies are going to want capital, patient capital. Then it is extremely important that you look not only to bank financing, which, as you know you pay the price in terms of interest immediately. While with the junior market it gives you time to grow and mature, and then you can pay, even dividends, but your shareholders are going to be waiting on you,” Dr Forrest said.
During the discourse, Bhagwandin pointed out that currently there are only 15 companies listed on the Guyana Stock Exchange, highlighting the reluctance of Guyanese companies to list on the market.
Consequently, Dr Forrest pointed to the importance of financial literacy and direct engagement with young people, which forms a key part of her strategy.
“It is very important to get the demand side, which is the investor, to get ready for the supply side, which is the issuer. Because if the issuer puts a prospector out and there’s nobody who understands the market, there is not going to be the supply of capital to them. Just simply talking about registration, understanding what they can do in terms of having that money, how to invest that money. Not only about putting it into a bank account, but what is it about wealth and intergenerational and generational wealth,” she said.

Dr Forrest further indicated that oftentimes young people take shared information back into their households, which, in turn, is then propagated.
Speaking to the role of the Jamaica Stock Exchange in the context of regional economic growth, Dr Forrest described it as the “heartbeat” of the financial market, playing a significant role in regional development and providing a model framework for the types of markets necessary in the region.