Day: March 7, 2022

This is a bank which is entrusted with the responsibility of maintaining economic stability and financial soundness of a country. It is therefore entrusted with two objectives: 1. Responsibility of maintaining financial soundness of the economy. The bank has therefore Read More …

There are some sectors in the economy that may not secure adequate funds from commercial banks for various reasons. May take a long time to realize returns High risk associated with such sectors Unattractiveness/low returns Uncertainty or highly volatile returns Read More …

It’s a computerized ledger system that enables the holding or transfer of securities without the need for physical movement. The ownership of security or shares is through a book entry instead of physical exchange CDS is for security what a Read More …

Was established in 1990 by an Act of Parliament to assist in creation of a conducive environment for growth and development of capital markets in Kenya. Role of CMA 1. To remove bottlenecks and create awareness for investment in long Read More …

Advantages 1. It facilitates the issue of securities to raise new finance, making a company less dependent upon retained earnings and banks. 2. The wider share ownership which results will increase the likelihood of being able to make rights issues. Read More …