What is Capital Market?
A financial system is generally comprised of the money market and the capital. A capital market is a market for securities which could be debt or equity, where business enterprises and government can raise long-term funds.
How to invest through the capital market?
What is an investment?
Generally, every activity that is done today but which has a “payday” at a later date can be described as an investment. Investment involves postponing your consumption today in order to put your savings where they can grow to more in future.
What is the role of Capital Market in an economy?
Creates suitable financial condition to attain investment including infrastructure projects and direct the resources to more productive projects thus accelerating growth and creating jobs.
What are the benefits of investing within the Capital Market?
Investing in securities that are listed in the Capital or Stock market encourages investors to accumulate their savings in small amounts over time
How does the Rwanda Stock Exchange (RSE) operate?
Trading on RSE is conducted through a dual process
How are shares bought and sold on the RSE?
After the shares have been allocated to subscribers in the primary market, the company that offered its shares to the public is listed on the Rwanda Stock Exchange (RSE) where shares can only be bought and sold through licensed stockbrokers (stockbrokers are professionals licensed by CMAC to buy
Stock market terms and definitions
A stock is a share of a company. It is the unit of ownership. When you buy a share in a company, you own a part of the capital of the capital and you become one of the owners of the company to the extent of the number of shares you hold in the company.
What is a share?
A shares or equity is a unit of ownership in a company.
Who is a shareholder?
A shareholder is one of the owners of the company. They enjoy all the rights including voting at the General meetings.
What is a bond?
A bond is a debt .When you buy a bond, you become a lender. When you buy Treasury Bonds you become a lender to the government and the government is the borrower. Equally when you buy a corporate bond you become a lender to the company.