CAPITAL MARKET PARTICIPANTS/ PLAYERS IN CAPITAL MARKETS.

The following are participants in capital markets:

i. Stock brokers:
These are agents who buy and sell shares on behalf of their clients to earn a
commission known as brokerage. A broker accepts stock orders from the clients and
the executed these directly on the exchange.

ii. Dealers/ jobbers/ traders:

These are the ones who trade in shares under their own account and gains profit
known as jobber turn. the dealer may actually be a client of another broker, so as
to trade these stocks on his own account to get a profit known as jobbers turn.

There are 3 types of jobbers namely;

(a) Bull: This is a jobber who buys shares when prices are low and hold them in
anticipation that the prices rise and sell them again.
(b) Bear: This is a jobber who sells security on expectation of decline in prices
in future . His intention is to buy same securities at lower prices in future and
make a gain.
(c) Stag: This is a jobber found in primary market who buys new securities offered
to the public.

(iii) Investors / shareholders: This is a person or legal entity that allocates

capital with the expectation of a future financial return.
(Iv) ISsuer : This is a legal entity that develops, registers and sells security to
the investing public in order to finance its own operations.
(v) stock exchange
(vi) Sponsors: These are entities supporting the goals and objectives of a capital
market
(vii) collective investment schemes;group of pulled of people who have got joint
account and buy shares.
(viii) capital market authority

CAPITAL MARKET AUTHORITY(CMA)

This is a public institution established by law responsible for developing and
regulating capital market business. In Rwanda this institution is called Rwanda
Capital Market Authority. It was established by law no.23/2017 of 31/5/2017.

RWANDA CAPITAL MARKET AUTHORITY.

VISION: To be a key contributor to Rwanda becoming a competitive center through

mobilization of long-term capital.

MISSION: To nurture wealth by facilitating the dev't of an orderly. Fair.

Transparent and efficient capital market.

CORE VALUES : Good governance, knowledge creativity and innovation.

RESPONSIBILITIES OF RWANDA CAPITAL MARKET AUTHORITY.

* Implementing the gov't policy on capital market.

* Preparing draft policies on capital markets
* Advising gov't on policy relating to the capital markets.
* Promoting public awareness of the capital market and develop such market.
* Elaborating action plans and conducting studies o me in order for CMA to achieve
it's mission.
* Formulating principles and regulations for the capital market.
* Controlling and supervising all capital market activities with a view to maintain
proper code of conduct and acceptable practices on the capital market.
* Registering capital market business and related instructions provided for by the
law regulating capital market business.
* Issuing, suspending and withdrawing licences and approvals related to capital
market business.
*Seeking to achieve fairness , efficiency and transparency in the functioning of
capital markets.
* Protecting citizens and investors in capital market from unfair and in sound
practices i.e practices involving fraud, cheating, manipulation e.t.c
* Monitoring, supervising and take actions with regard to the compliance with
capital market laws and regulations.

CAPITAL MARKET BUSINESS.

Capital market business refers to all business activities specified below:

-Dealing in capital market instructions.
- arranging deals in capital market instruments
-safe keeping and administration of assets.
-managing capital market instruments
-giving capital market advise
-using electronic means for giving investment instructions .