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 (AK
This is a condition in which the returns on an investment are greater than the cost of financing it. Example; if you were to borrow KES 100,000 at an interest rate of 10% and invest the same in a bond paying 12%, then there is a positive carry.
Initial Public Offering (IPO)
This is the first sale of stock by a private company to the public. It is done via the stock exchange and is also referred to as going public, or flotation. An IPO allows the issuing company to tap a wide pool of investors to provide it with large volumes of capital for future growth.
P/D Ratio
This is the price-to-dividend ratio. It is calculated by dividing the price of the share by the last paid out dividend. It assists in measuring the value of an investment.
Investment Club
This is a voluntary association of individuals who pool their money together to build an investment portfolio which would have otherwise not been possible with the small sums at each one’s disposal. A key advantage of an investment club is that more than one mind is engaged in making buy or sell decisions and that each member carries a relatively low risk. They help to build up investment consciousness among small investors.
Window Dressing
This is a deceptive practice employed by some mutual funds managers in which recently weak stocks are sold and recently strong stocks are bought just before the funds holdings are made public in order to give the impression that they have been holding good stocks all along.
Investor Word
Positive Carry
This is a condition in which the returns on an investment are greater than the cost of financing it. Example; if you were to borrow KES 100,000 at an interest rate of 10% and invest the same in a bond paying 12%, then there is a positive carry.
Initial Public Offering (IPO)
This is the first sale of stock by a private company to the public. It is done via the stock exchange and is also referred to as going public, or flotation. An IPO allows the issuing company to tap a wide pool of investors to provide it with large volumes of capital for future growth.
P/D Ratio
This is the price-to-dividend ratio. It is calculated by dividing the price of the share by the last paid out dividend. It assists in measuring the value of an investment.
Investment Club
This is a voluntary association of individuals who pool their money together to build an investment portfolio which would have otherwise not been possible with the small sums at each one’s disposal. A key advantage of an investment club is that more than one mind is engaged in making buy or sell decisions and that each member carries a relatively low risk. They help to build up investment consciousness among small investors.
Window Dressing
This is a deceptive practice employed by some mutual funds managers in which recently weak stocks are sold and recently strong stocks are bought just before the funds holdings are made public in order to give the impression that they have been holding good stocks all along.