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    Financial Markets

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    Ntege Simon
    This document discusses financial markets and the stock exchange of Uganda. It defines financial markets as markets where companies can raise funds by issuing short-term and long-term securities. It identifies two types of financial markets: money markets which deal in short-term securities like treasury bills, and capital markets which deal in long-term securities like bonds and shares. The document also outlines the requirements for companies to list on the Uganda Securities Exchange, the major players in the stock exchange like the exchange itself, investment companies, stock brokers and listed companies. It describes the roles of these players and some challenges facing the exchange.

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    Financial Markets

    Uploaded by

    Ntege Simon
    58 views5 pages
    This document discusses financial markets and the stock exchange of Uganda. It defines financial markets as markets where companies can raise funds by issuing short-term and long-term securities. It identifies two types of financial markets: money markets which deal in short-term securities like treasury bills, and capital markets which deal in long-term securities like bonds and shares. The document also outlines the requirements for companies to list on the Uganda Securities Exchange, the major players in the stock exchange like the exchange itself, investment companies, stock brokers and listed companies. It describes the roles of these players and some challenges facing the exchange.

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    This document discusses financial markets and the stock exchange of Uganda. It defines financial markets as markets where companies can raise funds by issuing short-term and long-term securities. It identifies two types of financial markets: money markets which deal in short-term securities like treasury bills, and capital markets which deal in long-term securities like bonds and shares. The document also outlines the requirements for companies to list on the Uganda Securities Exchange, the major players in the stock exchange like the exchange itself, investment companies, stock brokers and listed companies. It describes the roles of these players and some challenges facing the exchange.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    58 views5 pages

    Financial Markets

    Uploaded by

    Ntege Simon
    This document discusses financial markets and the stock exchange of Uganda. It defines financial markets as markets where companies can raise funds by issuing short-term and long-term securities. It identifies two types of financial markets: money markets which deal in short-term securities like treasury bills, and capital markets which deal in long-term securities like bonds and shares. The document also outlines the requirements for companies to list on the Uganda Securities Exchange, the major players in the stock exchange like the exchange itself, investment companies, stock brokers and listed companies. It describes the roles of these players and some challenges facing the exchange.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    Financial markets

    This is a market where short term and long term securities are sold to
    raise funds by the different companies listed to raise the funds. E.g.
    bonds, shares (ordinary shares), promissory notes, treasury bills,
    commercial paper, certificates of deposits.

    Types of financial markets

    Based on type

     Money markets. I.e. promissory notes, treasury bills, commercial


    paper, certificates of deposits
     Capital markets. I.e. bonds, shares (ordinary shares), loan notes
    Based on time
     Primary market
    Method of issuing securities in primary market include; public issue,
    private placements, preferential allotment and competitive biding.
     Secondary
    02/21/2023 market methods include;
    Benard Alurile auction and dealer market
    Requirements for a company to be listed on the USE
     Securities must be easily transferrable
     The company should be registered under the companies Act of UG
     Minimum capital requirement of 1bn and 3bl for locally listed and
    cross listed respectively
     The company must have made profits for the last three years
     The company should have accounting records for the last five years.
     The status of the security
     Sound management.
    Major players in the stock exchange of Uganda
    1. Uganda Securities Exchange (USE).
    Roles of USE
     Public awareness
     Provision of liquidity
     Policy formulation
     Facilitates trading
     Licencing companies
     Oversees
    02/21/2023 trading at the stock market
    Benard Alurile
    Challenges faced by USE
    Liquidity problems
    High minimal capital requirements
    Less expertise
    Technology
    Few companies listed
    Few securities
    Stringent policies formulated
    2. Capital Markets Authority (CMA) or the gov’t
    They have the following roles
    develop institutional investment,
    draft policies,
    divestiture of the state owned enterprises,
    corporate governance,
    regulates players in the market,
    foreign portfolio investments
    02/21/2023 Benard Alurile
    3. Investment companies or investment advisers.
    These include UAP Financial services, Smith and Bolton,
    Crested stocks and securities, Equity brokers.
    Roles of investors
    These provide advice to the investors on which securities to
    invest in.
    4. Stock brokers. These are the intermediaries who bring
    together the shareholders and the companies issuing the
    shares.
    They include the following; Crested Stocks Securities, SBG
    securities, Dyer and Blair, African Alliance, UAP financial
    services, Crane services, Equity stock brokers
    Roles of brokers
    Facilitate the trading.
    Act as intermediaries.
    02/21/2023 Benard Alurile
    5. Listed companies. These are the companies that
    issue the securities to raise funds for their operations.
    They both locally; listed and cross-listed.
    The locally listed include the following; UMEME,
    UCL, BOBU, DFCU bank, NVL ( New vision printing
    and pub co. ltd), SBU, NIC, BATU.

    The cross- listed companies include; EBL, KCB,


    EABL, JHL, KA, CENT, UCHM, NMG.
    6. Media.

    02/21/2023 Benard Alurile

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