As a licensed Stock Broker at the NSE Standard Investment Bank offers our clients customized services including but not limited to the services explained below.
Through Standard investment bank brokerage services our clients are enabled to purchase and sell shares either in the Primary market when a company is being listed at the Nairobi Stock Exchange also referred to as an Initial Public Offering (IPO) or participate in active trading via the secondary market on the Nairobi Stock Exchange which involves transacting the ownership of shares by investors who already own them.
Standard Investment Bank provides stock broking services through an experienced and dedicated customer service team trained to deliver personalized services that meet the individual needs of every client. We at Standard Investment Bank ensure that all transactions initiated by our clients are backed by verifiable orders to ensure the highest level of diligence.
This is a market in which shares are issued and traded through exchanges. Also known as the stock market. This market can be split into two main sectors:
Primary - where new issues are first offered (IPO)
Secondary â€“ where all subsequent (normal) trading takes place.
At the Stock Exchange, Stock prices change every day as a result of market forces, i.e. share prices change because of supply and demand.
Trading hours and procedures The main trading rules to note are the following:
Trading is conducted between 9:00am and 3:00pm each business day.
The Chief Executive of the exchange may vary trading hours upon the occurrence of an event, halt trading on the exchange (market halt) or halt trading on any of the securities (security halt).
Each securityâ€™s price is limited to +10% and -10% daily movement unless there is a material announcement
On the day of a material announcement/ news, the share price has no limit ( daily limit is usually 10% more or less than the previous day`s average price)
All shares are settled three (3) days of trading T+3.
company issuing shares to the public will do so through an Initial
Public Offer (IPO). The process involves identification of a
Transaction Advisor, normally an Investment Bank.
Advisor conducts/supervises all the procedures and obtains necessary
approval as laid down by the Capital Markets Authority. He also carries
out detailed valuation of the company to identify its worth thereby
determining the IPO Issue price. The details of the offer are then
published in a document called the prospectus which becomes publicly
available on the launch of the issue.
market is the normal daily exchange of shares at the market price. This
price understandably, is a result of supply and demand of shares. What
is difficult to comprehend is what makes people like a particular stock
and dislike another stock.
The principal theory is that price
movement of a stock indicates what investors feel a company is worth.
This worth is influenced by the following factors;
(a) Company Profits:
The most important factor that affects the value of a company is its earnings. Earnings are the profit a company makes. NSE listed companies are required to report their earnings at least two times a year and publish the same in the newspapers. The Standard Investment Bank Research Department can provide these filings on notice when required.
(b) Corporate Actions:
These are events approved by the board of directors that bring material change to the company and affects its shareholders. Examples of corporate actions are:
Bonus â€“ Profits Issued as stock that enables the company to keep cash on hand.
Dividends â€“ Profits Issued as cash on a calculation per share affect cash in the company and thus price per share.
Stock splits - This divides each of the outstanding shares of a company, thereby lowering the price per share but maintaining the total value of the shares.
Share Rights Issue - A company implementing a rights issue is offering additional and/or new shares but only to already existing shareholders. The existing shareholders are given the right to purchase or receive these shares before they are offered to the public.
(c) Mergers and Acquisitions:
When a publicly traded company joins with or acquires another company.
(d) News (Materiality):
News released by a company that might affect the value of its securities or influence investors` decisions. Not rumours but news filed with NSE.
Up to Kshs. 100,000
Net Brokerage Commission
Investor Compensation Fund Fee
Above the transaction costs is there a revenue stamp cost applied of
Kshs. 2 for every Kshs 10,000 Consideration. Kindly note that
consideration is rounded up to next Kshs 10,000 for this calculation.