Professional Documents
Culture Documents
The following benefits apply both to the primary and secondary markets:
1. ACCESS CAPITAL:
Private sector business and gov't can raise funds for expansion of existing
business or new projects by issuing shares or debt instruments directly to the
public.
Owners of business are able to discover the price of their securities and
therefore the value of their business by listing on the RSE. This enables them to
realise the market worth of their wealth.
When companies are listed on capital markets,it raises the profile of a company
through continuous media coverage which is free publicity
Capital markets are governed by CMA, this encourages the quality of management
practices.
Listed companies may easily employ executive using stock option techniques.
New issuers take advantage of incentives provided to listed companies. This comes
in the form of low costs and take advantages to share holders and owners of the
business.
Listed companies with known market value can use their shares as currency instead
of cash when taking over others.
CMA protects the investors from fraud , dishonesty and unfair practices in the
following ways:
* CMA ensures that only competent and credible professionals are licenced to serve
the market.
* CMA supervises all members of RSE to ensure compliance with regulatory
requirements.
*CMA ensures that prospectus of issuers have adequate disclosure for decision
making.
* CMA ensures that there are periodic reports and all prices sensitive information
are released once they are available.
* National Public Education and awareness campaigns create well informed investors.