capital markets
- Shares (listed and unlisted)
- Government notes and bonds(listed and unlisted)
- Corporate bonds(listed and unlisted)
- Property
- Units
- Derivatives
- Commodity
Note: **Always read the terms and conditions before signing any financial agreement or contract**
- Generating more money
- Raise cheaper capital
- Save for retirement
- Grow one’s investment
- Earn higher returns
- Reach financial goals
- Start and expand business
- Keep pace with inflation
3. Through a Collective Investment Scheme (Open)
- For open CIS, you first open an account with the Unit Trust
- You deposit money equivalent to shares you want to buy
- You can also buy the shares using mobile money for Mpamba Fesa. Minimum is K1,000.00
- You get daily reports on movements in share price and You benefit from distributions of income and capital gains
2. Through a portfolio Manager
- Sign an investment Management agreement with portfolio Manager
- Portfolio Managers manages your wealth or funds in line with mandate given which stipulates types of investment products
- Portfolio manger provides reports and updates on how funds are growing
- Minimum amounts to be managed start from K100,000
1. Through a stockbroker
- Open an account with a stockbroker, for free
- Select shares or bonds you want to buy
- Deposit money equivalent to value of shares or bonds you want to buy in brokers account
- Broker places an order on market
- Once order is executed, ownership details kept in a central securities depository
- Commission is minimal, up to 2% of value bought or sold
- Issuers- Suppliers of securities
- Investors- Suppliers of funds
- Exchanges
- Stockbrokers/Dealers
- Securities Representatives
- Investment Advisors
- Central Securities Depository
- Collective Investment Schemes
- Portfolio Managers;
- Transfer secretaries.
g. Continuous Availability of Funds : The capital market ensures the sufficient availability of funds in the economy. It continuously provides long term investment avenues to investors. It is a liquid market as buyers and sellers of securities are continuously available here. It always circulates funds among the different sectors of society, thereby ensuring adequate availability of funds.
f. Minimises Transaction Cost and Time : The capital market facilitates the trading of long-term securities. It reduces the overall cost and time involved in the whole trading process. The entire trading process is conducted electronically through automated systems and programs which speed up the entire process.
e. Economic Growth and Development :It helps in economic growth and development in the country. Capital market speeds up the economic growth rate in the country by providing funds among different sectors of the economy continuously. It provides funds for the large infrastructural development requiring huge funds in the country. Long term finance requirement of various business houses are met by the capital market.
d. Provision of Investment Avenues :The capital market provides different long term investment avenues to the investors looking for long term investments. It deals in trading of long term securities thereby raising and lending money for long periods. It provides and offers good interest rates options to the people for investing their surplus funds. People are encouraged to invest their funds and earn regular income in the form of interest.
b .Capital Formation:The capital market has an efficient role in capital formation in the economy. It fulfils and caters to the financial needs of different sectors of the economy by providing them with sufficient funds timely. It transfers funds from idle lying sources to more productive and development sources. It mobilises the saving of peoples through investments and lends that money for large development projects in the economy.
a. Links Savers and Investors :Capital market serves an intermediary between the people having excess funds and the ones who are in need of funds. It channels the idle lying resources to more productive sources where it can generate income and increase productivity. It mobilises people’s savings by directing and guiding them for productive investment. These investments provide regular income and growth to the investors
- Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.
- The most common capital markets are the stock market and the bond market
Organized markets designed for raising long term affordable capital. This is done through buying and selling financial instruments such as shares and bonds (also referred to as securities).
c. Regulate Security Pricesm :It helps in regulating the stable and systematic prices of securities. The capital market continuously monitors the trading of securities. It keeps an eye over whole processes and avoids any unproductive and speculative activities. Funds are provided at standard and minimum interest rates to the borrower. This helps in security prices stabilisation in the economy.
d.Provision of Investment Avenues: Capital Makets provides different long term investment avenues to the investors looking for long term investments. It deals in trading of long term securities thereby raising and lending money for long periods. It provides and offers good interest rates options to the people for investing their surplus funds. People are encouraged to invest their funds and earn regular income in the form of interest.