Day: March 6, 2022

1. Raising Capital for Businesses The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. 2. Mobilising Savings for Investment When people draw their savings and invest in shares, it Read More …

The basic function of a stock exchange is the raising of funds for investment in long-term assets. While this basic function is extremely important and is the engine through which stock exchanges are driven, there are also other quite important Read More …

Stock exchange (also known as stock markets) are special “market places” where already held stocks and bonds are bought and sold. They are, in effect, a financial institution, which provides the facilities and regulations needed to carry out such transactions Read More …

These are institutions which mediate or link between the savers and investors. There are numerous financial intermediaries in Kenya and include the following. 1. Commercial Banks. They act as intermediary between savers and users (investment) of funds. 2. Savings and Read More …

1. Organised Exchange and Over the Counter (OTC) market This is where the buying and selling of securities is done but buyers and sellers are not present but only the agents (brokers) internet. This system is called “open outcry”. 2. Read More …

These are markets that deal with securities that have been issued for the first time. The money flows directly from transferor (saver of money) to transferee (investing person). They facilitate capital formation. Economic Advantage of Primary Markets 1. Raising capital Read More …