The Kenya Association of Stockbrokers and Investment Banks is an association that represents the interests of Kenyan stockbrokerage and investment banking companies. It was initially founded as the Association of Kenya Stockbrokers (AKS)
This is the measure of the return on the investment and is shown as a percentage. It is calculated by dividing the annual dividend by the stock’s current market price. Example; a share selling at KES 50 and with an annual dividend of KES 5 per share yields 10%
This is a risk structure model used by investors who wish to spread their investments for safety and profits. At the base of the pyramid, its broadest span will be safe and liquid investments which will yield a decent return e.g. treasury bonds. The next segment will be debentures and shares which will yield a good return and at the top and narrowest segment with the least part of an investor’s funds will be the high risk investments which if successful yield extraordinary returns.
Broker is short for Stockbroker and refers to a member of the Nairobi Securities Exchange who is licensed to buy or sell securities on behalf of investors. Brokers are essentially the link between investors and the stock market. When acting on behalf of an investor for the purchase or sale of a listed stock, the broker does not own the securities but charges a commission on the gross value of the transaction.
This is a reduction in the number of shares that increases the par value of its shares and its earnings per share. The market capitalization of the company does not change at all. Example; in a one-for-two reverse split, a person who previously held 100 shares valued at KES 10, will now have 50 shares valued at KES 20.
This is the perceived loss when the value of a stock falls but is not actually sustained as the investor has not sold when the price has fallen.