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You are Here : Home > Investor Education > Keywords

Key words used in Investment

KASIB : The Kenya Association of Stockbrokers and Investment Banks
It is the umbrella association comprising of all stockbrokers and investment banks in Kenya . It has eighteen members in total and its offices are located in the Nairobi Central Business District at City House along Standard Street .

NSE : The Nairobi Securities Exchange
A Stock Exchange is the physical location where the stock market in a country is traded, or the electronic platform used to effect such trade. In Kenya , the Nairobi Securities Exchange is located in the Nairobi Central Business District, at the Nation Centre, along Kimathi Street .

CMA : Capital Markets Authority
The Capital Markets Authority is the overall industry regulator in Kenya . It was established by an act of parliament to promote, regulate and facilitate the development of an orderly, fair and efficient capital markets in Kenya .

CDSC : The Central Depository and Settlement Corporation
The Central Depository and Settlement Corporation operates and manages the Central Depository System (CDS) in Kenya for securities listed on the Nairobi Securities Exchange.

It is also known as the equity market. It is where the buying and selling of stocks takes place. It is the market in which shares are issued and traded either through exchanges or over-the-counter trading. It provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered (IPO's), with any subsequent trading going on in the secondary market.

It is also known as a share of stock. A stock is a small share that represents a partial ownership of a company. Stocks are issued by companies in order to raise capital and are bought by investors in order to acquire a portion of the company. If you own a share of a company's stock, you are a part owner of the company.

CDS : The Central Depository System
The Central Depository System can be compared to a bank where the records of all shareholding of listed companies are kept. It is a data base where investors can open accounts and debit them with shares for purposes of trading.

CDA A Central Depository Agent
A Central Depository Agent can either be a stockbroker or a custodian bank that has been granted authority by the Central Depository and Settlement Corporation to open, close or transfer accounts in the Central Depository System on behalf of investors.