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Capital MarketThe Dawn of Share Trading (1957-1960) Share trading in Ethiopia began in 1957, marking the start of a new era in the country’s financial landscape. By the early 1960s, the budding market had seen nearly 61 million Birr invested in shares, with a significant 41 million Birr flowing into foreign companies. This initial wave of
Capital MarketThe National Bank of Ethiopia (NBE) has issued a new directive, effective immediately, that significantly changes the investment landscape for banks in the country. Directive No. SBB/92/2024, which replaces the previous Directive No. SBB/65/2017, outlines new regulations regarding bank investments to enhance the capital market ecosystem. This new directive aims to provide a more robust
Learn Stock MarketLet’s talk about the concept of a capital market in the context of Ethiopia, using a bank, say, “X Bank,” as our example. In Ethiopia, banks are one of the most well-known share companies. So, let’s see how a capital market works for a share company like a bank: Imagine there’s a bank, “X Bank,”
Capital MarketQuick Takeaways: 1. Behavioral finance combines psychology and economics to understand how cognitive biases and emotions influence financial decision-making. 2. Investor psychology refers to the emotional and cognitive factors that influence investors’ decision-making process, such as herd behavior driven by fear of missing out. 3. Cognitive biases are systematic flaws in reasoning that can lead
Capital MarketQuick Takeaways: There are different types of stocks to consider: common stocks, preferred stocks, growth stocks, and value stocks. Common stocks offer ownership in a company, the opportunity to receive dividends and voting rights. Preferred stocks provide regular dividend payments before common shareholders and have priority in repayment during company dissolution or bankruptcy. Growth stocks
Capital MarketQuick Takeaways: As Ethiopia set its sights on establishing a stock market as a means to foster economic growth, attract investment, and provide opportunities for local businesses and investors, this ambitious endeavor is not without its challenges. It must confront a range of obstacles that require careful consideration and strategic solutions. From regulatory complexities and
Capital MarketDuring a compelling interview with The Reporter magazine, Dr. Brook Taye, the Director General of the Ethiopian Capital Market Authority (ECMA), shed light on an intriguing development. Among the thought-provoking topics discussed, Dr. Brook Taye revealed that the ECMA is looking closely toward the Casablanca Stock Exchange, exploring potential insights and lessons to be obtained.
Capital MarketA Beginner’s Guide to Understanding Its Purpose and Function Quick Takeaways: Introduction: As the Ethiopian stock market is set to open in the near future, understanding the fundamentals of investing becomes even more essential. If you’re new to investing or curious about how the stock market works, this beginner’s guide will provide you with a
Capital MarketThe Ethiopian Capital Market Authority (ECMA) has issued three directives aimed at strengthening the regulation of capital markets in Ethiopia. The directives cover the licensing and operating of securities exchanges and trading platforms, the recognition of self-regulatory organizations (SROs), and the licensing and supervision of capital market service providers (CMSPs). The directive on licensing and
