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 Rwanda; the Rwanda Stock Exchange is currently the only licensed stock exchange.
It is an organized and regulated financial market where securities are bought and sold at prices governed by the forces of demand and supply, Stock exchanges impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.
It is 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 is the interest rate on a fixed income security, e.g. bond, determined upon the issuance of the bond. Coupon also refers to the actual interest payment of the bond to the holder which is normally twice a year for government bonds.
This is a market segment where shares and securities are traded after the official hours. The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. For such transactions, brokers negotiate directly with one another through computer and telephony networks. It is also called off-board trading and transactions carried out in the OTC are effective the next trading day.
The capital market authority is the overall industry regulator in Rwanda. It was established by an act of parliament to promote, regulate and facilitate the development of an orderly, fair and efficient capital market in Rwanda.
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.
The Central Exchange Depository System can be compared to a bank where the records of all share holding of listed companies are kept. It is data base where investors can open accounts called Central Exchange Depository (CSD) and debit them with shares/bonds for the purpose of trading.
Central Depository Agent can either be a stockbroker or a custodian bank that has been granted authority by central bank (BNR) to open, close or transfer accounts in the central depository system on behalf of investors.
These are additional shares issued to existing shareholders in proportion to their holding. They are issued free of cost.
Also known as free float and is the total number of shares issued by a listed company that are publicly owned and available for trading. Floating stock is therefore the number of shares of a company that are traded at the Rwanda Stock Exchange.