Get premium membership and access questions with answers, video lessons as well as revision papers.
1. Organised Exchange and Over the Counter (OTC) market
This is where the buying and selling of securities is done by buyers and sellers are not present but only the agents (brokers) internet. This system is called “open outcry”.
2. Over the Counter Market (OTC)
Provides an opportunity for unlisted/unquoted firms to sell their security
Otc is usually organized by the dealers or stock brokers who buy securities themselves and then sell them.
They maintain a reasonable balance between demand and supply and observe price movements to determine profit margins on sale.
Trading may be done through telephones, computer networks, fax etc.
The dealers/participants set the treading rulesOTC specialize in securities such as corporate bonds, equity securities, Treasury bonds etc.
OTC is underdeveloped in Kenya.
Kavungya answered the question on March 12, 2019 at 05:06
- State the roles of Secondary Markets in the Economy.(Solved)
State the roles of Secondary Markets in the Economy.
Date posted: March 12, 2019. Answers (1)
- Give the economic Advantages of Primary Markets.(Solved)
Give the economic Advantages of Primary Markets.
Date posted: March 12, 2019. Answers (1)
- Give examples of Financial Instruments in Money market.(Solved)
Give examples of Financial Instruments in Money market.
Date posted: March 12, 2019. Answers (1)
- Give examples of Capital market financial institutions.(Solved)
Give examples of Capital market financial institutions.
Date posted: March 12, 2019. Answers (1)
- Give the Functions of Capital Markets.(Solved)
Give the Functions of Capital Markets.
Date posted: March 12, 2019. Answers (1)
- State the Functions of Financial Markets in the economy.(Solved)
State the Functions of Financial Markets in the economy.
Date posted: March 11, 2019. Answers (1)
- Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.(Solved)
Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.
Date posted: March 11, 2019. Answers (1)
- State the Advantages and disadvantages of Overdraft Finance.(Solved)
State the Advantages and disadvantages of Overdraft Finance.
Date posted: March 11, 2019. Answers (1)
- Give the Reasons Why Lease Finance Is Not Well Developed In Kenya.(Solved)
Give the Reasons Why Lease Finance Is Not Well Developed In Kenya.
Date posted: March 11, 2019. Answers (1)
- Give the advantages and disadvantages of leasing assets.(Solved)
Give the advantages and disadvantages of leasing assets.
Date posted: March 11, 2019. Answers (1)
- Give the Advantages of Using a Bill as a Source of Finance.(Solved)
Give the Advantages of Using a Bill as a Source of Finance.
Date posted: March 11, 2019. Answers (1)
- Give reasons Why It May Be Difficult For Small Companies To Raise Debt Finance In Kenya.(Solved)
Give reasons Why It May Be Difficult For Small Companies To Raise Debt Finance In Kenya.
Date posted: March 11, 2019. Answers (1)
- Give the Similarities between Debt and Preference Share Capital(Solved)
Give the Similarities between Debt and Preference Share Capital
Date posted: March 11, 2019. Answers (1)
- Give the Similarities between Preference and Equity Finance(Solved)
Give the Similarities between Preference and Equity Finance
Date posted: March 11, 2019. Answers (1)
- Give the Advantages and disadvantages of Using Debt Finance.(Solved)
Give the Advantages and disadvantages of Using Debt Finance.
Date posted: March 11, 2019. Answers (1)
- State the Reasons Why Commercial Banks Prefer To Lend Short Term Loans(Solved)
State the Reasons Why Commercial Banks Prefer To Lend Short Term Loans
Date posted: March 11, 2019. Answers (1)
- Give the Requirements for Raising Loan(Solved)
Give the Requirements for Raising Loan
Date posted: March 11, 2019. Answers (1)
- State the Conditions under Which Loans Are Ideal.(Solved)
State the Conditions under Which Loans Are Ideal.
Date posted: March 11, 2019. Answers (1)
- Describe the following.
a)Public limited companies.
b)Private limited companies.(Solved)
Describe the following.
a)Public limited companies.
b)Private limited companies.
Date posted: March 11, 2019. Answers (1)
- Define a Holding company.(Solved)
Define a Holding company.
Date posted: March 11, 2019. Answers (1)