Tuesday 5th November, 2013. Kampala…Capital Markets Authority (CMA) is pleased to announce that Mr. Keith Kalyegira has been appointed as the new Chief Executive Officer (CEO) of the Authority. Mr. Kalyegira replaces Mr.
Uganda celebrates fifty years, what is your take on this...
A loan raised by a company, paying a fixed rate of interest and secured on the assets of the company
Diversification of Risk ; Investors can secure a much wider diversification of risk, because these funds usually invest in different investments. Studies show that the greater the diversification of a portfolio, the lower the risk in relation to the return. Those who invest in CISs are therefore seeking to lower risk in relation to their return... read more
In Uganda, there is one type of CIS called unit trusts. One's investment is measured by the number of units held. Uganda has three types of unit trust funds in which you can invest, each with different requirements; the Balanced Investment Fund; the High Yield Fund and the Money Fund. The Balanced Fund; This is a long-term fund whose asset... read more
Collective Investment Schemes (CISs) are private financial arrangements that pool resources of many small savers, generating a large pool. The resources are then invested in various assets like shares, bonds, property and treasury bills with the sole purpose of generating high returns while minimizing risk through diversification of investments... read more
Currently we have only one approved stock exchange in Uganda; the Uganda Securities Exchange (USE), which is on 2nd Floor Workers House, Kampala. Collective Investment Schemes
Currently (April 2011) there are 14(fourteen) companies listed on the stock exchange. These are Uganda Clays Ltd, Bank of Baroda (U) Ltd, British American Tobacco Ltd, DFCU Ltd, The New Vision Printing and Publishing Co-Ltd, Stanbic Bank Uganda Ltd, National Insurance Corporation, East African Breweries Ltd, Kenya Airways Ltd, Jubilee Holdings... read more
This is a certificate showing evidence of ownership of shares in a company. It is a valuable document and must be kept safely.
Yes the broker/dealer charges you a commission for helping you trade in shares. S/he charges a fixed commission of 2% of the total value of your transaction. For example if Mary wishes to buy shares worth UShs 500,000, then the broker will charge her 2% which is; 2/100 x 500,000 = UShs 10,000
A specific area at a stock exchange where brokers/dealers competitively bid or offer securities of listed companies on behalf of their clients or on their behalf.
These are licensed professionals who research on the financial status of companies listed on the Exchange and make recommendations on which securities to buy or sell. They are not permitted to transact business on the Uganda Securities Exchange trading floor. A list of licensed investment advisors can be obtained from CMA.
These are professionals licensed by CMA to buy and sell shares on behalf of clients or on their own behalf. They are the only ones authorised to trade in securities on the USE trading floor. They also provide professional advice on selection and management of investments. A list of licenced broker/ dealers can be obtained from CMA.
A stock exchange is the actual physical location where trade in capital markets products takes place. The Uganda Securities Exchange has a trading floor on which brokers meet to carry out trade.
This is the market in which the shares of a company are listed on the stock exchange. At the secondary market, shares can only be bought through a licensed broker/dealer, that is a firm that buys and sells securities on behalf of investors for a commission or a brokerage fee. The broker/dealer or investment advisor will provide all the... read more
This refers to the market in which a company offers its shares to members of the public for the first time. It is also known as an Initial Public Offering (IPO). To buy shares during the IPO, a Share Application Form (SAF) is obtained from participating broker/dealers and authorised selling agents, which is completed by the prospective investor... read more