An Examination On Efficacy Of Disclosure Requirements In Capital Markets Authority Case Study: Kenya

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 a drop in the volume of trade has been witnessed. Most small investors are yet to return in large numbers due to experience of the last eighteen months where the market experienced high volatility in prices, with share prices dropping by almost forty 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. 2 This kind of "trading" is conducted by professional stockbrokers. Kenya's securities market has emerged from a state of sluggish decline in June 2008 when Safaricom broke records by launching East Africa's largest stock market