dc.description.abstract | World over, most securities investors stay glued to the affairs at the stock exchange markets. In
Kenya, the situation is not different as one can easily find the investors either watching at the live
trading of securities at the Nairobi Stock Exchange (NSE) or following up on the progress in the
media. All these constitute the 'appetite' to know the affairs of their investment.
Most of the investors in the securities market are yet to come to terms with the happenings at the
Nairobi Stock Exchange for the past two years where the bourse has witnessed a drop in the
volume of trade.
Most small investors are yet to return in large numbers due to experience of the last 18 months
where the market experienced high volatility in prices, with share prices dropping by almost 40
per cent during the period. 1
Securities exchange can be defined as the mutual organization which provides "trading" facilities
for stock brokers and traders, to trade stocks and other securities' This kind of "trading" is
conducted by professional stockbrokers.
Data from the NSE indicates that 20-Share Index fell 35.33(1923.65 points to 3521.18 in 2008
from a high of 5444.83 in 2007. However, to restore investor confidence the NSE plans to install
a broker back office system and improve governance through demutualization of the bourse. | en |