What are the main functions of Nairobi Stock Exchange?
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Apr 15
1. Facilitating the buying and selling of securities: The Nairobi Stock Exchange provides a platform for investors to buy and sell shares, bonds, and other securities issued by publicly traded companies.
2. Price discovery: The exchange helps in determining the fair market value of securities through the process of price discovery. This helps investors make informed decisions about their investments.
3. Capital raising: Companies can raise capital by issuing new shares or bonds on the Nairobi Stock Exchange. This provides companies with access to a larger pool of investors and helps them fund their growth and expansion plans.
4. Liquidity: The exchange provides liquidity to investors by allowing them to easily buy and sell securities. This helps investors to quickly convert their investments into cash if needed.
5. Market regulation: The Nairobi Stock Exchange regulates the trading of securities to ensure fair and transparent transactions. It sets rules and regulations to protect investors and maintain the integrity of the market.
6. Market information: The exchange provides market information, such as stock prices, trading volumes, and company announcements, to help investors make informed decisions. This information is crucial for investors to track the performance of their investments and identify potential opportunities.