What are the different instruments of the capital market?
The main instruments traded in the capital market are – equity shares, debentures, bonds, preference shares etc. The main instruments traded in the money market are short term debt instruments such as T-bills, trade bills reports, commercial paper and certificates of deposit.
What is the work of CMA Kenya?
The Capital Markets Authority of Kenya, also known as CMA in short, is an independent government financial regulatory agency responsible for supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange, and the central depository and settlement system and all the other …
What are the different types of financial instruments?
Financial instruments may be divided into two types: cash instruments and derivative instruments.
- Cash Instruments.
- Derivative Instruments.
- Debt-Based Financial Instruments.
- Equity-Based Financial Instruments.
What are the characteristics of capital market instruments?
Characteristics of The Capital Market Debt and equities instruments traded in the capital markets are intermediate or longer-term in maturity. The scope of the market is very wide. The supply of the new funds comes from the same sectors although it is funneled within the markets through financial institutions.
What are the examples of capital market?
Examples of Capital Markets Examples of highly organized capital markets are the New York Stock Exchange, American Stock Exchange, London Stock Exchange, and NASDAQ. Securities can also be traded “over the counter,” rather than on an organized exchange.
What powers do the CMA have?
we investigate mergers between organisations, to make sure they don’t reduce competition. we investigate entire markets if we think there are competition or consumer problems. we take action against businesses and individuals that take part in cartels or anti-competitive behaviour.
Who regulates capital markets in Kenya?
The Capital Markets Authority (CMA)
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.
What are the types of financial instruments and their functions?
Basic examples of financial instruments are cheques, bonds. stocks. Two of the most common asset classes for investments are, securities. There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.
What is the difference between money market and capital market?
The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The capital market encompasses the trade in both stocks and bonds.