By: Muhwezi D – C/man CMIC
Meditation and or thinking is what everybody experiences every day in our life time whether we want or not. It may be a voluntary or involuntary action. However, what so much is interesting is that, let it be students or teachers, young or old, male or female, to all kinds of people, differentiating meditation from thinking is as hard as telling the difference between non Jews and Gentiles in the Good News Bible, for the Qu’ran Iam not sure! In this article, I try to bring to you the difference between the two “brain disturbing phrases” – Meditation and Thinking.
Meditation is the art of being still, and centering oneself to communicate with the sacred witness. Many people confuse thinking with the act of meditation. Yes, one gets quiet, and one does hear the thoughts of the mind, but that is not meditation. The mind would really like to control you, and not you control it. Meditation is letting go of ego, and relating to the ones soul and body with connection to the mind. Sounds kind of confusing don't it? Well, we shall dig deep and try to give you an understanding of the differences of the two.
While it is true that the practice of meditation is focused on the mind, body and soul, it is also true that these are connections that will help heal us, and make us whole. Many people use meditation to reduce stress; that means they are not creating more stress by thinking about the stress, and how to solve problems. They are simply attempting to relax their mind, and body. Meditation when done in this quiet order will allow you to become healthier, and happier.
So, how does one rid their thoughts while meditating? Thoughts do not go away; they are with us at all times. The Problem to be answered is how can I control the mind and not think? There lies the real problem and the center of conducting meditation. Our thoughts control our life. In other words what we think, how we think influences our every move throughout our lives. In order to meditate learning to "let go" of our thoughts is important, and allowing silence will be our goal.
With that knowledge and hopefully understanding, we are now going to examine some ways of meditating. Find a quiet spot, it can be in your bedroom, in your living room, on the porch, outside, at a park, but somewhere quiet. I personally would suggest either the living room or bedroom, because you want to help your mind or thoughts become quieter. You may sit, or lie down. You may have soft music on, or even a candle. These are tricks that help your thoughts become focused. Sometimes you might want to purchase a guided meditation on CD to help you quiet your mind.
The very simplest form of meditation is as follows: breathe in, and then breathe out. As you are breathing follow your breath all the way through the pipes of the lung and bronchi. As you exhale follow the breath in reverse order. All you are doing is focusing on your breath. Then as you are focusing your mind will begin to wander. Very calmly very easily say to yourself the word "thinking" and then go back to watching your breath. Do not feel guilt, or get onto yourself for thinking just say the word, and then focus on your breath.
Another simple way to begin a meditation is to breathe in the hurt, pain, anger, sadness, or depression from yourself, from your friends, neighbors, enemies, the city, state, country, or world. Breathe in that and focus on one aspect of the above for mentioned. On the exhale breath you exhale love, peace and joy. This type of meditation is called Tonglan, and was taught to me through the readings of Pema Chodron.
The healthy meditation is about bringing in an image of light down through your body. As you are breathing you are mentally (yes, you are using your mind) visualizing a light entering the top of your head, and taking that light all down through your body to your toes. This is the kind of meditation that allows you to focus on your overall health. This is also an example of how to use your thoughts to your advantage of obtaining wealth, and not allowing your thoughts to wander away and bring about more stress.
With meditation comes the responsibility to know what your intention is in performing this relaxing act. If your life feels like complete chaos and stress, then the most important aspect is to relax. To relax during meditation is to take time out of your busy life, and meditate for at least 20 minutes. When you become comfortable then you can do more, but right now 20 is enough. If you are like many of the busy people you can do this in segments. After all if you need training in non-thinking I would suggest this method: Take the 20 minutes and chunk up the time. Do 10 minutes in the morning just before you get up, and 10 minutes in the evening just before sleeping. Yes, this will work. If you fall off asleep you are human, and it's ok, you have completed rested and relaxed. What do you do for lunch? Have you ever thought about taking 10 minutes of your lunchtime, and meditating? Following your breath is perfect for this.
There are many types of meditation to learn about, but these mentioned are easy, and understandable. Your thoughts will become less important, and your mind, body and soul will thank you. Stress reduction is the real goal. When your stress becomes less, then your body, mind and soul will begin to be healthier. You will also have more energy, and you'll sleep better at night. Meditation is definitely non-thinking. Meditation is not solving problems.
The solving of problems will be a by-product of the meditation. As creativity goes hand in hand with innovation in the business world, so meditation goes hand in hand with thinking to find solution to existing problems in our lives and societies.
Thursday, January 15, 2009
Tuesday, January 13, 2009
Wealth Creation Through small Beginnings
Personal Experience Of Capital Markets Investment Club in MUBS.
By: Muhwezi D - C/man CMIC.
Investing is something we do every day. Be it with people we relate to, the activities to which we allocate our time or even more importantly what we spend our money on. It was not until September 2007 when I participated in the Capital Markets University Challenge that I learnt how to become a “wise” investor. This Challenge involved the participation of many second year university students all over Uganda yet only three best students from three best universities would participate in the final phase of the competition. I had heard about the Capital Markets before but not understood its real essence. The challenge started off with the first phase of writing an essay to the set question – “How can a university student create wealth through Capital Markets?” After going through this stage successfully, there then comes the second and final phase of the competition; The most interesting and the most challenging. The finals required the successful students/universities to set up Investment Clubs (ICs), start an income generating business on capital of UShs 100,000. With two other finalists from Makerere University Business School, we set out to recruit new members to establish a lasting investment club that would help members and the public to embrace the usefulness of capital markets in wealth generation.
According to the rules of the competition, this club was supposed to be set up, operated and demonstrate possibility of continuity and sustainability within three weeks. It wasn’t therefore all that easy. Never had I known that this was to pave my way to investing while still young. I developed more courage after remembering the words of: Peter L. Bernstein, “The road to success in investing is paved with independence of spirit, decisiveness and the courage of one’s conviction”, and Cesare Pavese, 1908-1950,“To know the world, one must construct it”
Immediately after being given the task, we started advertising for recruitment for the new club to exist in Makerere University Business School. In November we held the first meeting of the pioneer members, chose the investment priority and structured the administration of which I was elected the club chairman.
Before all this, I had thought that capital markets were for rich people who have big businesses. However, with the investment club experience I have learnt that even people with small or even very small businesses can buy shares and even invest in the Collective Investment Schemes (CIs). After reading about the oldest investment club formed in Detroit by Fredrick C. Russell in 1940, it even gave me more drive. Fredrick’s club started as a mutual club of six people but currently the membership has tremendously multiplied and currently it has a portfolio of over $ 6 million and is still active. (About investment club.com)
The Capital Markets Investment Club (CMIC) of MUBS within a period of less than a year has invested in shares of Stanbic bank (over 2900 shares) and has money to invest in any upcoming Initial Public Offers (IPOs). This has been a great experience in relation to financial and capital markets. With my little money, through the club it has been possible to pool funds and be counted among the “wise investors”. From my experience in the investment club, I decided to purchase shares in Stanbic Bank Uganda besides the investment club-an opportunity I never at one time dreamt of. The lesson realized is that before one participates in the capital markets, one may not easily realize the value and the benefits of this kind of “wise investing”.
In March 2008, the investment club hosted visitors from Capital Markets Authority Kenya and they gave support towards the business in Makerere University Business School carried out by the club. You can imagine what kind of business this was! It was not a big or an every one’s attractive business but just a “kabalagala” (local pan cakes) business. On the MUBS campus, talking about capital markets is now a usual phrase for “good” investors.
“Just with a small business as small as frying and selling pancakes, one can invest alongside great men in company shares? One can sit with tycoons in a company Annual General Meeting and influence decisions?” One MUBS student asked me when the investment club had been formed and had invested in securities.
The investment club has grown so much that we are even approached by parents requesting that we grant club membership to their children to invest with us.
However, behind every success, there are challenges. Yes it is true that the investment club has been growing tremendously but there have been many challenges. For instance balancing between academic pursuits and the club activities. However, this has been overcome by transforming the club from pancake business to savings scheme. This in most people’s ears sounds to be something big, isn’t it? It may be or it may not but the whole question is “Where did the club start?, How much did it start with and how has it grown to that level? The answer is simple- the investment club started small but is growing big because it invests in securities and CIs through which members have learnt how to save and invest.
You may just wonder, most of the club members have individually invested in stocks on the Uganda Securities Exchange and in CIs at African Alliance Uganda. This is so because these members have realized the secret in capital markets as an avenue for accumulating wealth. With only Shs 50,000 initial investment, one can invest in CIs and by buying a minimum of 100 shares of any given company one can invest in stock. One third year student who was helped by the club to invest her Shs 60,000 in shares was so excited about the investment she had made. After the Stanbic Bank Annual General meeting, she invited me for dinner and said, “I was so excited to see myself seated with important people even with my little investment of Shs 60,000! I wish I had known before. I will continue to invest in shares so that my investments can grow”. Currently her investment has grown to more than Shs 150,000.
Who does not want to accumulate wealth through honest means? The basic idea behind investment is to begin small and grow big by investing as much as we can save. From my experience in the Capital Markets investment club, I have learnt that humble and small beginnings in the investment world results into great investments. From my experience, most people ask “How can a simple person like me invest on the Capital Markets?” With any small business one may carry out whether for “kabalagala”, tomatoes and onions or others, it is possible to invest and enjoy the benefits of the capital markets. The market is not segregative, it’s for everyone to participate and enjoy its fruits despite of level of income, status and any other consideration. Nonetheless, remember to invest wisely, to protect your investments.
By: Muhwezi D - C/man CMIC.
Investing is something we do every day. Be it with people we relate to, the activities to which we allocate our time or even more importantly what we spend our money on. It was not until September 2007 when I participated in the Capital Markets University Challenge that I learnt how to become a “wise” investor. This Challenge involved the participation of many second year university students all over Uganda yet only three best students from three best universities would participate in the final phase of the competition. I had heard about the Capital Markets before but not understood its real essence. The challenge started off with the first phase of writing an essay to the set question – “How can a university student create wealth through Capital Markets?” After going through this stage successfully, there then comes the second and final phase of the competition; The most interesting and the most challenging. The finals required the successful students/universities to set up Investment Clubs (ICs), start an income generating business on capital of UShs 100,000. With two other finalists from Makerere University Business School, we set out to recruit new members to establish a lasting investment club that would help members and the public to embrace the usefulness of capital markets in wealth generation.
According to the rules of the competition, this club was supposed to be set up, operated and demonstrate possibility of continuity and sustainability within three weeks. It wasn’t therefore all that easy. Never had I known that this was to pave my way to investing while still young. I developed more courage after remembering the words of: Peter L. Bernstein, “The road to success in investing is paved with independence of spirit, decisiveness and the courage of one’s conviction”, and Cesare Pavese, 1908-1950,“To know the world, one must construct it”
Immediately after being given the task, we started advertising for recruitment for the new club to exist in Makerere University Business School. In November we held the first meeting of the pioneer members, chose the investment priority and structured the administration of which I was elected the club chairman.
Before all this, I had thought that capital markets were for rich people who have big businesses. However, with the investment club experience I have learnt that even people with small or even very small businesses can buy shares and even invest in the Collective Investment Schemes (CIs). After reading about the oldest investment club formed in Detroit by Fredrick C. Russell in 1940, it even gave me more drive. Fredrick’s club started as a mutual club of six people but currently the membership has tremendously multiplied and currently it has a portfolio of over $ 6 million and is still active. (About investment club.com)
The Capital Markets Investment Club (CMIC) of MUBS within a period of less than a year has invested in shares of Stanbic bank (over 2900 shares) and has money to invest in any upcoming Initial Public Offers (IPOs). This has been a great experience in relation to financial and capital markets. With my little money, through the club it has been possible to pool funds and be counted among the “wise investors”. From my experience in the investment club, I decided to purchase shares in Stanbic Bank Uganda besides the investment club-an opportunity I never at one time dreamt of. The lesson realized is that before one participates in the capital markets, one may not easily realize the value and the benefits of this kind of “wise investing”.
In March 2008, the investment club hosted visitors from Capital Markets Authority Kenya and they gave support towards the business in Makerere University Business School carried out by the club. You can imagine what kind of business this was! It was not a big or an every one’s attractive business but just a “kabalagala” (local pan cakes) business. On the MUBS campus, talking about capital markets is now a usual phrase for “good” investors.
“Just with a small business as small as frying and selling pancakes, one can invest alongside great men in company shares? One can sit with tycoons in a company Annual General Meeting and influence decisions?” One MUBS student asked me when the investment club had been formed and had invested in securities.
The investment club has grown so much that we are even approached by parents requesting that we grant club membership to their children to invest with us.
However, behind every success, there are challenges. Yes it is true that the investment club has been growing tremendously but there have been many challenges. For instance balancing between academic pursuits and the club activities. However, this has been overcome by transforming the club from pancake business to savings scheme. This in most people’s ears sounds to be something big, isn’t it? It may be or it may not but the whole question is “Where did the club start?, How much did it start with and how has it grown to that level? The answer is simple- the investment club started small but is growing big because it invests in securities and CIs through which members have learnt how to save and invest.
You may just wonder, most of the club members have individually invested in stocks on the Uganda Securities Exchange and in CIs at African Alliance Uganda. This is so because these members have realized the secret in capital markets as an avenue for accumulating wealth. With only Shs 50,000 initial investment, one can invest in CIs and by buying a minimum of 100 shares of any given company one can invest in stock. One third year student who was helped by the club to invest her Shs 60,000 in shares was so excited about the investment she had made. After the Stanbic Bank Annual General meeting, she invited me for dinner and said, “I was so excited to see myself seated with important people even with my little investment of Shs 60,000! I wish I had known before. I will continue to invest in shares so that my investments can grow”. Currently her investment has grown to more than Shs 150,000.
Who does not want to accumulate wealth through honest means? The basic idea behind investment is to begin small and grow big by investing as much as we can save. From my experience in the Capital Markets investment club, I have learnt that humble and small beginnings in the investment world results into great investments. From my experience, most people ask “How can a simple person like me invest on the Capital Markets?” With any small business one may carry out whether for “kabalagala”, tomatoes and onions or others, it is possible to invest and enjoy the benefits of the capital markets. The market is not segregative, it’s for everyone to participate and enjoy its fruits despite of level of income, status and any other consideration. Nonetheless, remember to invest wisely, to protect your investments.
Monday, January 12, 2009
Capital Markets And Increased Mineral Potentials
By: Muhwezi. D. - Chairman CMIC
Every day, month or year that passes, new mineral potentials are discovered in Uganda. I think in some years to come, Uganda will change from "Pearl of Africa" to the "Mineral country" - so interesting.
In the new year 2009, we see the South-Western region with the highest mineral potential coded Bolck 7 as reported by Fugro Airborne Survey - a South African company. The survey also reveals that the South-Eastern part of the country coded Block 1 and West Nile coded Block 5 have potentials of mineral resources.
reports show that 80% of the country has been surveyed for mineral resources, however, results for Blocks 2, 3 and 4 are awaiting final interpretation and their results are likely to be released in two months.
What do you think will be the result of this increased mineral potential? Of course this will attract investors who will want to commit their capital resources in the Uganda's mining industry. Obviousily this is a sign of economic development in the country.
Do you see any influence of such on the capital market's development. In real sense the mining industry will increase the people's incomes through creation of more jobs, and with increased incomes, savings increase which in turn increases the level of investments. Capital markets being one of the options of investments especially for long term will develop. This will be through increased individual investments, corporate investments, new listings and set up of new brokerage firms as well as investment advisors and even Collective Investment Schemes.
The mineral resources are also expected to enhance income quality to some extent since Ugandans will get employment . This will increase the number of the Ugandan population participating on the Ugandan capital market.
All Ugandans should embrace the idea of mineral exploitation since it will be a base for economic development as well as improved standards of living. Capital markets player such as stock brokers, investment advisors and collective Investment Scheme managers should rise up and join efforts to carry out massive public education about the industry. This should be done country wide even in the up-country regions. It will help the public to be aware of this long term option which they shall utilise once they fetch the benefits from the anticipated fruits of the growing mining industry.
Every day, month or year that passes, new mineral potentials are discovered in Uganda. I think in some years to come, Uganda will change from "Pearl of Africa" to the "Mineral country" - so interesting.
In the new year 2009, we see the South-Western region with the highest mineral potential coded Bolck 7 as reported by Fugro Airborne Survey - a South African company. The survey also reveals that the South-Eastern part of the country coded Block 1 and West Nile coded Block 5 have potentials of mineral resources.
reports show that 80% of the country has been surveyed for mineral resources, however, results for Blocks 2, 3 and 4 are awaiting final interpretation and their results are likely to be released in two months.
What do you think will be the result of this increased mineral potential? Of course this will attract investors who will want to commit their capital resources in the Uganda's mining industry. Obviousily this is a sign of economic development in the country.
Do you see any influence of such on the capital market's development. In real sense the mining industry will increase the people's incomes through creation of more jobs, and with increased incomes, savings increase which in turn increases the level of investments. Capital markets being one of the options of investments especially for long term will develop. This will be through increased individual investments, corporate investments, new listings and set up of new brokerage firms as well as investment advisors and even Collective Investment Schemes.
The mineral resources are also expected to enhance income quality to some extent since Ugandans will get employment . This will increase the number of the Ugandan population participating on the Ugandan capital market.
All Ugandans should embrace the idea of mineral exploitation since it will be a base for economic development as well as improved standards of living. Capital markets player such as stock brokers, investment advisors and collective Investment Scheme managers should rise up and join efforts to carry out massive public education about the industry. This should be done country wide even in the up-country regions. It will help the public to be aware of this long term option which they shall utilise once they fetch the benefits from the anticipated fruits of the growing mining industry.
Friday, January 9, 2009
Successful Investment Clubs
Following these strategies can help your investment club enjoy longevity
By Muhwezi. D. J, Matthew S. Scott and Vikki Conwell
WHEN BLACK ENTERPRISE PROFILED the GrassRoots Investment Group L.L.C. in July 2002, the club consisted of a group of energetic, innovative investors who were relying on their individual expertise to improve their profits. "We have people who are in law school, who are engineers, some who work for Internet companies, who own their own businesses, as well as some in banking and sales, and we lean on those individuals," says founder Phillipe Tatem.
Although GRIG had a rocky time adjusting to a volatile market that slashed its portfolio's assets from $200,000 to $118,000 during the tech-wreck of 2000 and the recession that followed, the original idea of relying on the business savvy of its members has proven to be a winning strategy. Since 2000, the group has reorganized and turned that $118,000 into a portfolio worth more than $1.3 million that includes equities, real estate, and business operations such as a car wash and detailing franchise. All told, the club has had a 22% return over the last two years.
GRIG accomplished this by concentrating on making its members better investors and setting up a system that capitalized on the business knowledge of its members. This has translated into investment choices that have a greater chance of success. Instead of having every investment idea vetted by every member of the club, the club now has five distinct "operating teams." Each team finds cash-generating opportunities with equity ownership and then delivers a comprehensive report on the opportunity to the general membership. A member of the management team sits on each of the other teams to make sure the goals of the team are reached.
As international events make the investment environment more challenging, coming to a consensus as an investment group has become more difficult than before. Adopting innovative approaches is one way growing investment clubs can improve their success. In fact, clubs of all sizes can implement strategies that strengthen investment habits among members and increase overall portfolio returns. Here are some secrets that successful investment clubs have used to do just that.
Success starts with information
"The best investors are the best informed," says Kenneth Janke, chairman of Better Investing (formerly the National Association of Investors Corp.). According to Janke, investment clubs have traditionally sought advice from financial advisers, but as the clubs gain more knowledge, their need for advisers lessens. Janke also says the best clubs use technology to acquire more information about the market, opting for discount brokers instead of full-service ones, and investing online.
Successful clubs understand that investment success takes time and perseverance. It requires investing small amounts regularly over the long term despite market fluctuations or cycles. "Getting rich is not something that happens overnight," says Janke. "Some of the clubs that go out of business early do so because they try to trade stocks every month. Even the pros don't do that."
According to Better Investing's 2005 membership survey, the average investment club has a portfolio worth $97,441. The clubs surveyed had an average rate of return of 4%, compared with 4.7% for the Vanguard Total Stock Market Fund. However, over the long term, they outperformed the fund. The 10-year average total return for clubs was 16.1%, compared with 9.5% for the Vanguard Fund.
As a member of a 66-year-old investment club in Detroit, Janke has witnessed the benefits of investing over the long run. When one of his club's original members died in August 2005, after more than six decades of investing no more than $50 a month for a total of $13,800 out of pocket, the club paid his estate $1.6 million. "If that doesn't exemplify the principles of regular investing for the long term, I don't know what does," Janke says.
GrassRoots investment group L.L.C.
Founded in 1997 as a general partnership, GRIG became a limited liability corporation at the end of 2000 to provide cash dividends to members every quarter. The L.L.C. status requires more extensive internal audits, so the organization's streamlined operations structure makes business sense all the way around. GRIG now has 39 members across 10 states and Korea. New members make an initial contribution of $10,000, with another $10,000 due over a 15-month period, and they pay monthly dues of $175 each.
Tatem explains that splitting GRIG up into five operating business teams allowed the club to:
* Maximize members' skill sets and increase member participation by placing people with similar experience, interests, and passion on the same team.
* Reduce investment risk by having teams conduct a higher level of due diligence.
* Increase the return on investment (ROI) by selecting a key group of members to handle initial groundwork and negotiation on potential opportunities.
GRIG uses technology to communicate. "We post all information related to meetings, presentations, general information, and objectives on our Website," says Tatem. "We have teleconferences to evaluate deals within the teams. The teams get final approval at the general meeting via online vote. We conduct online surveys to monitor how teams are meeting objectives and how the leadership within the group is performing."
The new structure has proved successful; the organization's asset value increased from $200,000 in 2002 to more than $1.3 million by 2005.
However, growth hasn't come without problems. Marck Dorvil, senior partner and a member of the Ventures team, says GRIG acquired a $20,000 equity stake in a copy center in Florida in late 2001, but lack of expertise on the part of copy center managers quickly forced GRIG to withdraw, losing about 60% of its investment.
By Muhwezi. D. J, Matthew S. Scott and Vikki Conwell
WHEN BLACK ENTERPRISE PROFILED the GrassRoots Investment Group L.L.C. in July 2002, the club consisted of a group of energetic, innovative investors who were relying on their individual expertise to improve their profits. "We have people who are in law school, who are engineers, some who work for Internet companies, who own their own businesses, as well as some in banking and sales, and we lean on those individuals," says founder Phillipe Tatem.
Although GRIG had a rocky time adjusting to a volatile market that slashed its portfolio's assets from $200,000 to $118,000 during the tech-wreck of 2000 and the recession that followed, the original idea of relying on the business savvy of its members has proven to be a winning strategy. Since 2000, the group has reorganized and turned that $118,000 into a portfolio worth more than $1.3 million that includes equities, real estate, and business operations such as a car wash and detailing franchise. All told, the club has had a 22% return over the last two years.
GRIG accomplished this by concentrating on making its members better investors and setting up a system that capitalized on the business knowledge of its members. This has translated into investment choices that have a greater chance of success. Instead of having every investment idea vetted by every member of the club, the club now has five distinct "operating teams." Each team finds cash-generating opportunities with equity ownership and then delivers a comprehensive report on the opportunity to the general membership. A member of the management team sits on each of the other teams to make sure the goals of the team are reached.
As international events make the investment environment more challenging, coming to a consensus as an investment group has become more difficult than before. Adopting innovative approaches is one way growing investment clubs can improve their success. In fact, clubs of all sizes can implement strategies that strengthen investment habits among members and increase overall portfolio returns. Here are some secrets that successful investment clubs have used to do just that.
Success starts with information
"The best investors are the best informed," says Kenneth Janke, chairman of Better Investing (formerly the National Association of Investors Corp.). According to Janke, investment clubs have traditionally sought advice from financial advisers, but as the clubs gain more knowledge, their need for advisers lessens. Janke also says the best clubs use technology to acquire more information about the market, opting for discount brokers instead of full-service ones, and investing online.
Successful clubs understand that investment success takes time and perseverance. It requires investing small amounts regularly over the long term despite market fluctuations or cycles. "Getting rich is not something that happens overnight," says Janke. "Some of the clubs that go out of business early do so because they try to trade stocks every month. Even the pros don't do that."
According to Better Investing's 2005 membership survey, the average investment club has a portfolio worth $97,441. The clubs surveyed had an average rate of return of 4%, compared with 4.7% for the Vanguard Total Stock Market Fund. However, over the long term, they outperformed the fund. The 10-year average total return for clubs was 16.1%, compared with 9.5% for the Vanguard Fund.
As a member of a 66-year-old investment club in Detroit, Janke has witnessed the benefits of investing over the long run. When one of his club's original members died in August 2005, after more than six decades of investing no more than $50 a month for a total of $13,800 out of pocket, the club paid his estate $1.6 million. "If that doesn't exemplify the principles of regular investing for the long term, I don't know what does," Janke says.
GrassRoots investment group L.L.C.
Founded in 1997 as a general partnership, GRIG became a limited liability corporation at the end of 2000 to provide cash dividends to members every quarter. The L.L.C. status requires more extensive internal audits, so the organization's streamlined operations structure makes business sense all the way around. GRIG now has 39 members across 10 states and Korea. New members make an initial contribution of $10,000, with another $10,000 due over a 15-month period, and they pay monthly dues of $175 each.
Tatem explains that splitting GRIG up into five operating business teams allowed the club to:
* Maximize members' skill sets and increase member participation by placing people with similar experience, interests, and passion on the same team.
* Reduce investment risk by having teams conduct a higher level of due diligence.
* Increase the return on investment (ROI) by selecting a key group of members to handle initial groundwork and negotiation on potential opportunities.
GRIG uses technology to communicate. "We post all information related to meetings, presentations, general information, and objectives on our Website," says Tatem. "We have teleconferences to evaluate deals within the teams. The teams get final approval at the general meeting via online vote. We conduct online surveys to monitor how teams are meeting objectives and how the leadership within the group is performing."
The new structure has proved successful; the organization's asset value increased from $200,000 in 2002 to more than $1.3 million by 2005.
However, growth hasn't come without problems. Marck Dorvil, senior partner and a member of the Ventures team, says GRIG acquired a $20,000 equity stake in a copy center in Florida in late 2001, but lack of expertise on the part of copy center managers quickly forced GRIG to withdraw, losing about 60% of its investment.
Poverty Alleviation Through Capital Markets
Introduction:
The objective of this article is to provide an insight on how an ordinary individual can use the capital markets to get out of poverty.PovertyIn simple terms poverty can be defined as lack of income and material assets and the absence of basic needs that support life.According to the 2005 study shows that 20% of Ugandans household live in chronic poverty-The poverty report of 2008 shows that more than 7million people or 26% of the total population live in chronic poverty.Despite being at the fore front of implementing a comprehensive poverty eradication strategy, Uganda is like any other African countries, which are still struggling to get a solution to the problem.In this fieldwork I was tasked by the authority to carry public sensitization on how people of low income earners, people at grass root level can improve their wellbeing by forming investment clubs and communities that can participate in the capital markets to eradicate poverty.As it is already indicated it is true, poverty at the grass root level is at the highest level some household can not afford 2 meals a day. The expenditure per adult falls below the poverty line it is calculated on the basis of the shilling amount necessary to purchase a basket of essential foods commodities.Most people interacted with were giving answers which were all related to poverty as a main problem that denies them an opportunity to invest and save in the capital markets industry. As social worker I analyzed the broad perspective and functions of social work the agency adheres to.The agency carries public education in order to create awareness among the public to know that there is an alternative way how they can invest there money as well as saving in buying shares.CMA is also promoting developmental ideas to the public, in order to encourage people to have an alternatives means to generate income rather than depending on one source.The agency also adheres to preventive\ promotive, as one of the main tool of eradicating poverty in the public. This is to encourage people to learn how to utilize they small savings either by forming societies or investment clubs so as to participate in the buying and selling of shares.As a professional social worker, if consulted about the best perspective fitting this organisation. According to me Capital markets authority is providing developmental ideas to the public. In Uganda people have a poor culture of saving, and very few who are interested in investing in shares which have proved to be lucrative business both long term and short term depending on the market forces.The organization’s public education programme is promotive and preventive, in terms of educating people how to use the little they earn in order to accumulate wealth, and to learn how to plan for the future by investing in different economic activities.
Below is the demonstration how poor people can utilize the capital markets to fight poverty.
Unit Trust (collective investment schemes)The CIS is an alternative means of how the poor can fight poverty by pooling their small income together to form a scheme. As earlier on indicated the highest percentage of the population is engaged in subsistence agriculture, which does not earn them sufficient income. The second group is in the private sector.In order for such groups to improve in their financial status they need to form schemes or clubs where each individual will contribute the little saving in the scheme.After a month each individual will have contributed enough to invest in the collective investment scheme.The amount can be trusted to a fund manager who will invest it in shares or treasury bills on behalf of the group in order to accumulate profits for the scheme.The above demonstration shows that the capital markets can be used as mechanism, to raise funds to fight poverty.
THE SKILLS I EMPLOYED WHEN HANDLING THE TASK.
Since Capital Market authority is financial organization and the work involved is mostly economic goals, I applied the following skills.Challenging Skills: The highest number of the questions raised by the different groups and individuals I interacted with was the issue of capital to invest in this industry, and lack of unemployment so as to earn a living and to be able to participate in this industry; these are the main points that featured in this public education drive.As professional social worker I challenged my clients to be innovative and find means of being self employed as the government can not employ every citizen with the few jobs available.As social worker I advised the clients to use the opportunity of forming groups so as to access funds in micro finance institutions to be able to generate income, for example they can start projects like piggery, poultry and other economic activities that can improve they economic wellbeing.In this research the highest number of the clients interacted with, are the youth who covers the highest percentage. They have almost similar problems ranging from early school drop out, early marriage and lack of vocational skills that can enable them to be self employed. The second groups were those who have the capacity to invest but they are reluctant to invest in securities, they only consider in investing in farming and yet this kind of investment is prone to climate factors and diseases. As a social worker I challenged them, to consider in investing in financial instruments as the risks are minimal, and at times they open other avenues like accessing short and long term loans in banks and other lending instutions.
COMFROTATION SKILLS
During this public education drive some questions required confrontation skills.Mostly on poverty and what is the solution to avoid it? How can capital market assist the poor? And what are the benefits in investing in these share business?The above questions are confrontational since they demand answersIn the interactions both on individual basis and the radio talk shows I clearly informed the role played by CMA that is to promote the industry, regulate and protection of the investors. CMA intervention in solving poverty is to educate the public that there is an alternative means to improve the economic status of people by participating in collective investment schemes or buying of shares on an individual basis.Again those who buy shares in the companies that are listed on the Uganda Securities exchange benefit by being share holders that means they have voting rights on important matters in that company by being share holders.Shareholders are also entitled to a share dividend every year but this depends if the company makes profits and it may also in agreement with its shareholders decide to reinvest the profits in the company.The share holders can also benefit by selling their shares when the share price increase from its original share price, this is called capital gain.Share holders can also benefit from a share split, this is when the company shares becomes expensive or the demand for them is too high than the supply.Example given in this case is the shares of Uganda Clays, at the IPO each share was 4000 that was 2000 by 2006each share was trading at 23500 ,they did a share split and each share was 10000 it again raised to 22500 the third time the share split was put 100 current share price is 195 shillings.Bank of Baroda the price per share reached 5000 and share split brought it to 500 currently it is 900.Note the existing share holders’ benefit from the share split because the existing shares are the ones to be multiplied, i.e each Uganda clays share was splited 10 times, this allows the existing share holder to acquire more shares and he can sell and remain with the original numbers of shares.Principles adhered when handling the task assigned to me.I applied the principle of Acceptance, as a professional social worker am supposed to treat each equally without discrimination, in the field work clients of different category approached me and assisted them without grading them regardless of they age and status.Principle of IndividualisationDifferent clients that approached me in the course my field work had different questions which required particular answers that could not be applied to others, there those who preferred to be advised alone not as group for the purpose of understanding and yet some of the problems raised are similar.Client self determinationThough the public awareness campaign was geared at sensitizing the people about the capital markets as an alternative means to invest and save, we were not allowed to decide for the people,, to invest in shares but to educate them the importance of investing in different avenues that are available, again the public was informed that investing in shares involves risks like any other business. The selling and buying of shares involves the brokers who are licensed by CMA and they are members of the securities exchange (USE)This means the decision to invest in shares is left in the hands of the clients; the authority only regulates, promotes, and protects them from fraudsters.As a social worker I used social work role of an empowerer, among the objective of the capital markets authority public education is to empower people of all levels i.e low income earners to form investment clubs or groups and pool resources together so as to invest in collective investment scheme .The resources are then invested in various assets like treasury bills, shares, bonds, property, with sole purpose of generating high returns while minimizing risks through diversification of investments.In Uganda there are three types of unit trust funds in which you can invest each with different requirements The Balanced fund ; This is long term –fund whose assets allocation is mainly in long term products and securities like bonds ,shares, etc. The minimum amount required to invest in this fund is UShs 50,000 only.The High yield fund; This is a fund whose asset allocation is in medium term securities and products. The minimum amount required to invest in this fund is UShs 50,000 only.The Money fund; This is a fund which invests in short term products and securities like treasury bills, current accounts, etc. This fund is better suited for people who wish to save money over a short period of time .The minimum amount required to invest in this fund is UShs 250,000 only. To invest in CIS you contact a fund manager.Apart from social work I applied knowledge from other course units especially economics and social services.Since most CMA work is more of financial related, economics dominated the field workAnd this is determined on the questions the clients were asking, which were all geared at the alternative saving and investing to the public.Though there were other questions but all were related to one unit economics.Challenges faced during the practicum and how they were handled?The challenges that I faced during my field work were mostly to convince the people about the new ideas of investing in shares, and yet the public perceive such ventures to be for the rich who can only participate.The other problem was the way people understood the whole concept, people were relating CMA to institutions like micro finances, some micro finances have conned people their money promising to give them big loans if they open accounts with tThere was a problem of interpreting the economic language which most people failed to understand though there was brochures in local languages still an interpretation was required, even those in English still people wanted further understanding of the whole idea.During my internship at the capital markets authority, I was able to use the resource center so I was able to answer most questions, and I gave advice to those who picked interest in investing in shares. For the schools we visited it was interesting because the students learn the capital markets in the economic subject but without going in details so this was an opportunity for them. The impact I got on my life and my future career dueto the fieldwork.The fieldwork helped me to acquire knowledge in terms of financial matters and it also helped me discover the way how people can cooperate to raise funds in case of a common goal. The field work also gave me the opportunity to interact with people, and know the problems there are facing mostly in villages, where poverty has dominated the lives of the majority. Areas like capital markets is too far they concern because there not able to solve even the problems they encounter like affording proper health, enough food, and other basic needs.The fieldwork helped me to express my self in public, to be able to interact with people of different age and those with different opinion on the fieldwork I was doing it was challenging experience.Conclusion: The capital markets authority in Uganda is still its infancy, and according to me the capital markets authority has done a good job, given what is on the ground.To compare CMA Uganda with other emerging markets in Africa the progress is promisingDeveloping capital markets is an evolutionary process that takes a long time to accomplish. The process is complex it entails changing the investment culture of the entire community. Fortunately there are other emerging economies that have been successful in developing their financial markets. This means we in Uganda we can also follow the same approach to develop our market. All that is required is to enhance programmes like public education and others that have been successfully implemented in other emerging markets.Capital Markets Authority requires to find other source of funding in order to increase the public education campaign, this is evident on the ground little is known about the whole industry save for the small percentage of the population that is informed.I am convinced that the increase in dissemination of information to the public will enhance fully participation of the public country wide.Further more I suggest that Uganda Christian University Mukono should sign a Memorandum of Understanding with the Capital Markets Authority so as to include the capital markets as course unit in the university curriculum. This will help the students from different faculties to benefit from the authority in gaining knowledge, which is useful for academic purpose and the students can be taken for internship by Capital Markets. At the moment it’s only Makerere University that has signed a memorandum of understanding with the Capital Markets Authority.
The objective of this article is to provide an insight on how an ordinary individual can use the capital markets to get out of poverty.PovertyIn simple terms poverty can be defined as lack of income and material assets and the absence of basic needs that support life.According to the 2005 study shows that 20% of Ugandans household live in chronic poverty-The poverty report of 2008 shows that more than 7million people or 26% of the total population live in chronic poverty.Despite being at the fore front of implementing a comprehensive poverty eradication strategy, Uganda is like any other African countries, which are still struggling to get a solution to the problem.In this fieldwork I was tasked by the authority to carry public sensitization on how people of low income earners, people at grass root level can improve their wellbeing by forming investment clubs and communities that can participate in the capital markets to eradicate poverty.As it is already indicated it is true, poverty at the grass root level is at the highest level some household can not afford 2 meals a day. The expenditure per adult falls below the poverty line it is calculated on the basis of the shilling amount necessary to purchase a basket of essential foods commodities.Most people interacted with were giving answers which were all related to poverty as a main problem that denies them an opportunity to invest and save in the capital markets industry. As social worker I analyzed the broad perspective and functions of social work the agency adheres to.The agency carries public education in order to create awareness among the public to know that there is an alternative way how they can invest there money as well as saving in buying shares.CMA is also promoting developmental ideas to the public, in order to encourage people to have an alternatives means to generate income rather than depending on one source.The agency also adheres to preventive\ promotive, as one of the main tool of eradicating poverty in the public. This is to encourage people to learn how to utilize they small savings either by forming societies or investment clubs so as to participate in the buying and selling of shares.As a professional social worker, if consulted about the best perspective fitting this organisation. According to me Capital markets authority is providing developmental ideas to the public. In Uganda people have a poor culture of saving, and very few who are interested in investing in shares which have proved to be lucrative business both long term and short term depending on the market forces.The organization’s public education programme is promotive and preventive, in terms of educating people how to use the little they earn in order to accumulate wealth, and to learn how to plan for the future by investing in different economic activities.
Below is the demonstration how poor people can utilize the capital markets to fight poverty.
Unit Trust (collective investment schemes)The CIS is an alternative means of how the poor can fight poverty by pooling their small income together to form a scheme. As earlier on indicated the highest percentage of the population is engaged in subsistence agriculture, which does not earn them sufficient income. The second group is in the private sector.In order for such groups to improve in their financial status they need to form schemes or clubs where each individual will contribute the little saving in the scheme.After a month each individual will have contributed enough to invest in the collective investment scheme.The amount can be trusted to a fund manager who will invest it in shares or treasury bills on behalf of the group in order to accumulate profits for the scheme.The above demonstration shows that the capital markets can be used as mechanism, to raise funds to fight poverty.
THE SKILLS I EMPLOYED WHEN HANDLING THE TASK.
Since Capital Market authority is financial organization and the work involved is mostly economic goals, I applied the following skills.Challenging Skills: The highest number of the questions raised by the different groups and individuals I interacted with was the issue of capital to invest in this industry, and lack of unemployment so as to earn a living and to be able to participate in this industry; these are the main points that featured in this public education drive.As professional social worker I challenged my clients to be innovative and find means of being self employed as the government can not employ every citizen with the few jobs available.As social worker I advised the clients to use the opportunity of forming groups so as to access funds in micro finance institutions to be able to generate income, for example they can start projects like piggery, poultry and other economic activities that can improve they economic wellbeing.In this research the highest number of the clients interacted with, are the youth who covers the highest percentage. They have almost similar problems ranging from early school drop out, early marriage and lack of vocational skills that can enable them to be self employed. The second groups were those who have the capacity to invest but they are reluctant to invest in securities, they only consider in investing in farming and yet this kind of investment is prone to climate factors and diseases. As a social worker I challenged them, to consider in investing in financial instruments as the risks are minimal, and at times they open other avenues like accessing short and long term loans in banks and other lending instutions.
COMFROTATION SKILLS
During this public education drive some questions required confrontation skills.Mostly on poverty and what is the solution to avoid it? How can capital market assist the poor? And what are the benefits in investing in these share business?The above questions are confrontational since they demand answersIn the interactions both on individual basis and the radio talk shows I clearly informed the role played by CMA that is to promote the industry, regulate and protection of the investors. CMA intervention in solving poverty is to educate the public that there is an alternative means to improve the economic status of people by participating in collective investment schemes or buying of shares on an individual basis.Again those who buy shares in the companies that are listed on the Uganda Securities exchange benefit by being share holders that means they have voting rights on important matters in that company by being share holders.Shareholders are also entitled to a share dividend every year but this depends if the company makes profits and it may also in agreement with its shareholders decide to reinvest the profits in the company.The share holders can also benefit by selling their shares when the share price increase from its original share price, this is called capital gain.Share holders can also benefit from a share split, this is when the company shares becomes expensive or the demand for them is too high than the supply.Example given in this case is the shares of Uganda Clays, at the IPO each share was 4000 that was 2000 by 2006each share was trading at 23500 ,they did a share split and each share was 10000 it again raised to 22500 the third time the share split was put 100 current share price is 195 shillings.Bank of Baroda the price per share reached 5000 and share split brought it to 500 currently it is 900.Note the existing share holders’ benefit from the share split because the existing shares are the ones to be multiplied, i.e each Uganda clays share was splited 10 times, this allows the existing share holder to acquire more shares and he can sell and remain with the original numbers of shares.Principles adhered when handling the task assigned to me.I applied the principle of Acceptance, as a professional social worker am supposed to treat each equally without discrimination, in the field work clients of different category approached me and assisted them without grading them regardless of they age and status.Principle of IndividualisationDifferent clients that approached me in the course my field work had different questions which required particular answers that could not be applied to others, there those who preferred to be advised alone not as group for the purpose of understanding and yet some of the problems raised are similar.Client self determinationThough the public awareness campaign was geared at sensitizing the people about the capital markets as an alternative means to invest and save, we were not allowed to decide for the people,, to invest in shares but to educate them the importance of investing in different avenues that are available, again the public was informed that investing in shares involves risks like any other business. The selling and buying of shares involves the brokers who are licensed by CMA and they are members of the securities exchange (USE)This means the decision to invest in shares is left in the hands of the clients; the authority only regulates, promotes, and protects them from fraudsters.As a social worker I used social work role of an empowerer, among the objective of the capital markets authority public education is to empower people of all levels i.e low income earners to form investment clubs or groups and pool resources together so as to invest in collective investment scheme .The resources are then invested in various assets like treasury bills, shares, bonds, property, with sole purpose of generating high returns while minimizing risks through diversification of investments.In Uganda there are three types of unit trust funds in which you can invest each with different requirements The Balanced fund ; This is long term –fund whose assets allocation is mainly in long term products and securities like bonds ,shares, etc. The minimum amount required to invest in this fund is UShs 50,000 only.The High yield fund; This is a fund whose asset allocation is in medium term securities and products. The minimum amount required to invest in this fund is UShs 50,000 only.The Money fund; This is a fund which invests in short term products and securities like treasury bills, current accounts, etc. This fund is better suited for people who wish to save money over a short period of time .The minimum amount required to invest in this fund is UShs 250,000 only. To invest in CIS you contact a fund manager.Apart from social work I applied knowledge from other course units especially economics and social services.Since most CMA work is more of financial related, economics dominated the field workAnd this is determined on the questions the clients were asking, which were all geared at the alternative saving and investing to the public.Though there were other questions but all were related to one unit economics.Challenges faced during the practicum and how they were handled?The challenges that I faced during my field work were mostly to convince the people about the new ideas of investing in shares, and yet the public perceive such ventures to be for the rich who can only participate.The other problem was the way people understood the whole concept, people were relating CMA to institutions like micro finances, some micro finances have conned people their money promising to give them big loans if they open accounts with tThere was a problem of interpreting the economic language which most people failed to understand though there was brochures in local languages still an interpretation was required, even those in English still people wanted further understanding of the whole idea.During my internship at the capital markets authority, I was able to use the resource center so I was able to answer most questions, and I gave advice to those who picked interest in investing in shares. For the schools we visited it was interesting because the students learn the capital markets in the economic subject but without going in details so this was an opportunity for them. The impact I got on my life and my future career dueto the fieldwork.The fieldwork helped me to acquire knowledge in terms of financial matters and it also helped me discover the way how people can cooperate to raise funds in case of a common goal. The field work also gave me the opportunity to interact with people, and know the problems there are facing mostly in villages, where poverty has dominated the lives of the majority. Areas like capital markets is too far they concern because there not able to solve even the problems they encounter like affording proper health, enough food, and other basic needs.The fieldwork helped me to express my self in public, to be able to interact with people of different age and those with different opinion on the fieldwork I was doing it was challenging experience.Conclusion: The capital markets authority in Uganda is still its infancy, and according to me the capital markets authority has done a good job, given what is on the ground.To compare CMA Uganda with other emerging markets in Africa the progress is promisingDeveloping capital markets is an evolutionary process that takes a long time to accomplish. The process is complex it entails changing the investment culture of the entire community. Fortunately there are other emerging economies that have been successful in developing their financial markets. This means we in Uganda we can also follow the same approach to develop our market. All that is required is to enhance programmes like public education and others that have been successfully implemented in other emerging markets.Capital Markets Authority requires to find other source of funding in order to increase the public education campaign, this is evident on the ground little is known about the whole industry save for the small percentage of the population that is informed.I am convinced that the increase in dissemination of information to the public will enhance fully participation of the public country wide.Further more I suggest that Uganda Christian University Mukono should sign a Memorandum of Understanding with the Capital Markets Authority so as to include the capital markets as course unit in the university curriculum. This will help the students from different faculties to benefit from the authority in gaining knowledge, which is useful for academic purpose and the students can be taken for internship by Capital Markets. At the moment it’s only Makerere University that has signed a memorandum of understanding with the Capital Markets Authority.
Tuesday, January 6, 2009
An experience at the 12th ASEA conference
It's a rare opportunity to see students called from University to have an experience with diginitories,honourable members,chief executives of all stock exchange companies in not only East Afirca but the whole of Africa. I glady mingled with top exective officers of private companies and rubbed shoulders with corporate magisrates of leading brokerage firms in Africa. It included not only the true African breeds but an exotic mixture of likely investors I should say,I met one exhibitor from the United Kingdom and we shared alot about the technologies used for share trading. Not much I could say because I had only limited time to spend with them since there was a cocktail at 6:00pm, I missed that to attend my evening lectures,besides I was registered as an exhibitior and I was locked form meeting the big men. Any way soon enough I was whisked away back to my exhibition stall. Little did I know that the high profile digintories would engage with me at the stall. With a smile and embraced knowledege of custmoer care services, I worked hard to pull them to stall for corporate chat especailly the foreiegn type I wanted to make them feel at home in a close African continent where we shared everything apart from our distant locations.There I met a Ghanian diginitory,he seem to want to interact with me so I hit the road soon we exchanged cards. Of course it was my boss's card I exchanged.I remembered the theme of the conference which was lavishly opened by his excellency the President of Uganda Yoweri Kaguta Museveni at the serena confernce, "Transforming African economies through the capital markets",not exactly but it awas something like that.
To this day I ponder in my head as to whether as Uganda or Ugandans we really benefited through the Uganda securities exchange which hosted the confernce. During the conference I overheard some one say that a friend form a certain country came and the best she knew she could do for her self was to interact and net work with people from countries she has never gone to most of all enjoy her time at the conference thats what matters because none knows whether what they discussed will be implemented or left for the next generation to build from.
To this day I ponder in my head as to whether as Uganda or Ugandans we really benefited through the Uganda securities exchange which hosted the confernce. During the conference I overheard some one say that a friend form a certain country came and the best she knew she could do for her self was to interact and net work with people from countries she has never gone to most of all enjoy her time at the conference thats what matters because none knows whether what they discussed will be implemented or left for the next generation to build from.
Will NIC IPO Be Worth Of Investing?
You have read, heard or even told others that national Insurance Corporation wants to sell its shares to the public during the Initial public Offer it has planned for long. Indeed it is true and most probably this year it is going to be real and it is what most of us are yearning for.
In the minds of many, however, since there has been and there is a global crisis, the question about this IPO is, "will it be successful and will investors surely gain?" we all know that the last IPO that we have seen did not give good results. (Those who participated in SafariCom IPO). But remember this was the stock which was listed on the foreign market-The Nirobi Stock Exchange(NSE) thus there was a fluctuation in the exchange rate which made those who were refunded to lose some of there money. The problem was that during the purchase of the shares, the transactions had to be carried out with the Kenyan shilling which raised its demand, there by becoming expensive to buy at as high as 1Ushs=28Kshs. At the time of refund due to share over subscription, the kshs had dropped to as low as Kshs23. This means that there was a loss of Kshs5 per share refunded. However, the NIC IPO is a domestic stock thus will not be affected by the exchange rate. In any case the domestic IPOs in Uganda have been registering success. Once this chance comes, let us all use it and invest to enjoy the benefits of IPOs most especially those who missed out the Stanbic IPO. Being a young market, the Uganda Securities Exchange (USE) is an ideal for those who wish to accumulat wealth. let us start the new year 2009 in style and with a greater sense of investing to develop our economy.
With the cross-listing of kenya Commercial Bank (KCB) on the USE and now with the anticipated coming of NIC IPO, it is an indication that the capital markets are growing. don't you wish to grow with those who are growing?, or you want to be a laggard-watch while others grow. I think investing now for long term is an ideal for all ugandans because once the depression is over, those who will have invested wioll gain. However, remeber to seek stock broker advice before reaching a decision to invest. With NIC IPO, read the prospectus carefully and seek any relevant information necessary to you as an invesor. Otherwise it will be worth for you if well evaluated and anaysed.
In the minds of many, however, since there has been and there is a global crisis, the question about this IPO is, "will it be successful and will investors surely gain?" we all know that the last IPO that we have seen did not give good results. (Those who participated in SafariCom IPO). But remember this was the stock which was listed on the foreign market-The Nirobi Stock Exchange(NSE) thus there was a fluctuation in the exchange rate which made those who were refunded to lose some of there money. The problem was that during the purchase of the shares, the transactions had to be carried out with the Kenyan shilling which raised its demand, there by becoming expensive to buy at as high as 1Ushs=28Kshs. At the time of refund due to share over subscription, the kshs had dropped to as low as Kshs23. This means that there was a loss of Kshs5 per share refunded. However, the NIC IPO is a domestic stock thus will not be affected by the exchange rate. In any case the domestic IPOs in Uganda have been registering success. Once this chance comes, let us all use it and invest to enjoy the benefits of IPOs most especially those who missed out the Stanbic IPO. Being a young market, the Uganda Securities Exchange (USE) is an ideal for those who wish to accumulat wealth. let us start the new year 2009 in style and with a greater sense of investing to develop our economy.
With the cross-listing of kenya Commercial Bank (KCB) on the USE and now with the anticipated coming of NIC IPO, it is an indication that the capital markets are growing. don't you wish to grow with those who are growing?, or you want to be a laggard-watch while others grow. I think investing now for long term is an ideal for all ugandans because once the depression is over, those who will have invested wioll gain. However, remeber to seek stock broker advice before reaching a decision to invest. With NIC IPO, read the prospectus carefully and seek any relevant information necessary to you as an invesor. Otherwise it will be worth for you if well evaluated and anaysed.
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