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Explain the main factors behind the rapid development of capital markets in your country.

      

Explain the main factors behind the rapid development of capital markets in your country.

  

Answers


Kavungya
1) The Capital Market Authority has been educating investors through advertisement and press releases. As a result investors make informed decisions leading to development of capital markets.
2) Incentives given by the government to investors e.g. tax incentives
3) Political stability
The absence of war and turmoil within the Kenyan borders has led to development of industries.
4) Introduction of wider range of financial instruments in the market e.g. futures, warrants, options e.t.c.
5) Proper regulation by the CMA ensures that trading is well regulated and investors do not lose funds in the market. This has led to investor confidence in the capital market.
6) Encouraging development of institutional investors like insurance funds, pension schemes etc.
Kavungya answered the question on March 30, 2022 at 09:27


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