ABSTRACT
The general objective of this study was to investigate and understand the factors that
influence share price manipulation prior to an IPO, effects of this to individual investors
and the subsequent effect to the Nairobi Stock Exchange.
The Researcher employed four research objectives this were Assessing how poor or lack
of information within the individual investors influenced the process of shares pricing,
Assessing how dysfunctional rules and regulations of the NSE and CMA were
influencing the valuation of shares prior to an IPO, Investigating whether the conflict of
interest within the major shareholders lead to the manipulation of share prices and
Assessing whether increased entry of new investors influenced the process of pricing
shares. To achieve these objectives the researcher sampled 80 respondents across some
brokerage firms (Suntra Investment Bank, CFC financial services, Faida Securities,
Ngenye Kariuki and Sterling Securities) that are associated with the NSE and CMA
which are the two regulatory bodies.
The major finding of the study was that dysfunctional rules in the CMA and NSE,
increased number of new entrants, poor or lack of information by the investors and a low
number of stock options are the factors influencing the activity of pricing of shares and
all these might eventually lead to investors shying away from the IPO's and thereafter the collapse of the Nairobi Stock Exchange.
CAROLINE, K (2021). Factors Influencing Share Price Prior To An Intfial Public Offer And Their Effect To Individual Investors: A Case Study Of Nairobi Stock Exchange. Afribary. Retrieved from https://afribary.com/works/factors-influencing-share-price-prior-to-an-intfial-public-offer-and-their-effect-to-individual-investors-a-case-study-of-nairobi-stock-exchange
CAROLINE, KENDI "Factors Influencing Share Price Prior To An Intfial Public Offer And Their Effect To Individual Investors: A Case Study Of Nairobi Stock Exchange" Afribary. Afribary, 04 Jun. 2021, https://afribary.com/works/factors-influencing-share-price-prior-to-an-intfial-public-offer-and-their-effect-to-individual-investors-a-case-study-of-nairobi-stock-exchange. Accessed 19 Apr. 2024.
CAROLINE, KENDI . "Factors Influencing Share Price Prior To An Intfial Public Offer And Their Effect To Individual Investors: A Case Study Of Nairobi Stock Exchange". Afribary, Afribary, 04 Jun. 2021. Web. 19 Apr. 2024. < https://afribary.com/works/factors-influencing-share-price-prior-to-an-intfial-public-offer-and-their-effect-to-individual-investors-a-case-study-of-nairobi-stock-exchange >.
CAROLINE, KENDI . "Factors Influencing Share Price Prior To An Intfial Public Offer And Their Effect To Individual Investors: A Case Study Of Nairobi Stock Exchange" Afribary (2021). Accessed April 19, 2024. https://afribary.com/works/factors-influencing-share-price-prior-to-an-intfial-public-offer-and-their-effect-to-individual-investors-a-case-study-of-nairobi-stock-exchange