The NASD OTC platform, expected to offer liquidity, transparency and integrity, will not only afford prospective investors the pricing information and liquidity but also acts as provider of choice for OTC trading of various types of securities. The Securities and Exchange Commission (SEC) had in the first quarter of this year granted an Approval-in-Principle to The NASD Limited to operate OTC market in Nigeria.
“This market is also expected to benefit Small and Medium Enterprises (SMEs) who are seeking to raise capital,” says Bismarck Rewane, CEO, Financial Derivatives Company, adding that it will “provide liquidity window for investors in public unquoted companies.”
Looking at the expected impact of the OTC market, Rewane related it to The Shenzhen Stock Market, the junior stock market in Shanghai dedicated to SMEs created in 2004. He said the market has listed 490 companies and raised $53 billion in the last six years.
On the stock market at large, he noted that there were only 206 (less than 100 actively traded) stocks on the NSE All Share Index compared with South Africa 400, and Brazil at 450. NASD will be providing capital raising windows to all qualified public sector and corporate entities, especially small-to-medium sized companies seeking to raise capital and for investors seeking to trade existing securities on a transparent platform.
It is also expected to provide a liquidity window for not only investors and fund managers who invested in public unquoted companies, but also expand opportunities for Pension Fund Administrators who are required to invest only in publicly traded securities.
NASD has said that through its platform, it will provide trading and price discovery system for equities, bonds and other derivative instruments.
Related Post:
stock info
- Global Markets news today august 30 2011
- World markets new danger zone president of the World Bank has warned
- Trading Game Is Causing the Manic Market
- Stock Market august 9 2011, waiting Federal Reserve Ben Bernanke Comment
- Cramer's Stock to Watch for Week august 8 2011
- stock market outlook 9 august 2011
- Greenspan predicted stock market drop after downgrade august 8 2011
- impact the technology sector has had on IPOs 2011
- factors which make stock markets panic, Analysts Forecast
- Stock market Summary ends week August 05, 2011, FTSE 100 Index, Japan's Nikkei 225 and Hong Kong's Hang Seng down
No comments:
Post a Comment