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Tuesday 15 March 2011

Importance of Nairobi Stock Market to the Kenyan Economy

For an economy to grow, money needs to shift from les to more productive activities. In other words, idle money and savings should be invested in productive activity for the economy to grow. The Nairobi Stock Exchange makes this possible by:
Enabling idle money and savings to become productive by bringing the borrowers and lenders of money together at a low cost. The lenders (all savers) become the investors. They lend/invest and expect a profit/financial reward. The borrowers also known as issuers in the markets borrow and promise to pay the lenders a profit. We want to encourage savings and investments through the Nairobi stock Exchange.
Educating the public about the higher profits in shares and bonds; how to buy and sell; when and why to buy and sell. We also educate the public on how to invest together as a group. Facilitating good management of companies by asking them to give periodic reports of their performance. Providing a daily market reports and price list to ensure that investors know the worth of their assets at all times.
Providing financial solutions to common problems. Shares and bonds are accepted guarantees for Co-operative Society’s and bank loans. Shares and bonds can be planned, with the help of a money manager, to pay for school fees, medical, car and other insurance schemes, pension or retirement plans etc. Through shares and bonds, the government, small and big companies, cooperatives societies and other organizations can raise money to expand their business activities, make a profit, create employment and generally help the economy to grow.

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