SHARES PURCHASE REPORT

Committee Members
1. Cliff Mayaka
2. Faith Muthaburi
3. Dennis Mombo
4. Sanya Kevin
5. Morris Muthomi
Key Findings
We first set out to establish the brokerage company to engage in opening Central Depository
System account (CDS Account). This is an account that facilitates holding of shares in electronic
accounts, opened by shareholders and manages the process of transferring shares traded at the
stock exchange. We established brokerage commission rates are standard in the market as set
by Capital Markets Authority (CMA).Trade worth less than K Shs 100k are charged 2.1% and
1.8% for trades above. We settled on Equity for the CDS account opening as we already have a
bank account with them and easiness of the process.
Type of Stock Investors

For the purpose of enlightening the group more on stock investing below are the different types
of investors in the market.

 Dividend stocks Investors: their interest is on stocks that pay dividend.

 Growth Stocks Investors; their interest is on the long-term growth of stocks (capital gains)
in the long-term due to foreseeing company growth.
 Defensive stocks investors: they do not want to lose money in the stock market so they
avoid high volatile movement stocks.

Recommendations
We propose a review of the budgeted cash ceiling of K Sh 100,000 to K Sh 120,000 as this we
allow the group benefit on brokerage commission discount. The group considers investing in
dividend paying stocks and growth stocks for the long term. We recommend should the group
adopt this report and Invest in equities market, the counters to be considered are Safricom, KCB
and NIC through a single tripartite purchase allocation.
We hope the team will find our findings and recommendations useful as we make a decision on
this type of investment.