Financial WELLNESS with Richmond Kwame Frimpong

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Special Economic Zones (SEZs)
Richmond Kwame Frimpong

CAPITAL MARKETS 101

Capital markets are markets for the trading of financial instruments such as stocks, mutual funds and bonds. Capital markets serve as a means of channeling funds from investors to users of capital such as government, businesses and individuals.

Capital markets are made up of primary markets and secondary markets. With primary markets, new stock and bond issues are sold to investors while secondary markets trade existing securities.



In considering capital market securities (i.e. securities with maturities greater than one year) let’s delve more into Shares, Bonds and Mutual Funds.

SHARES

Shares are units of ownership interest in a company or financial assets. The two main types of shares are common shares and preferred shares.

Currently, there are forty-four (44) stocks/ shares listed on the Ghana Stock Exchange.

STOCK NUMBER OF LISTED STOCKS EXAMPLES
COMMON SHARES 37 EGH, GOIL, SOGEGH, FML
GHANA ALTERNATIVE MARKET 4 MMH, HORDS, IIL
PREFERRED SHARES 1 SCB PREF
DEPOSITORY SHARES 1 AADS
EXCHANGE TRADEABLE FUNDS 1 GLD

 

BONDS

Bonds are debt investment in which an investor loans money to an entity either corporate or governmental, which borrows the funds for a defined period of time at a variable or fixed interest rate. An owner of a bond is a creditors of the issuer.

Below are a few examples of Government of Ghana 3-year and 5-year bonds.

Issue No. ISIN Value(million) Coupons % Maturity
1434 GHGGOG039579 570.70 23.47 21/05/2018
1456 GHGGOG041005 994.86 24.5 22/10/2018
1347 GHGGOG032681 649.96 19.04 24/09/2018

 

There is still a whole universe yet to explore in terms of the above securities. Contact a FINANCIAL ADVISOR TODAY for more details. 

You may send comments, questions or suggestions if any to [email protected] and @richmondkwamefrimpong across all social media platforms

 

 

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