The effect of initial public offer on the stock exchange market in Uganda A Case Study of National Insurance Corporation ( NIC) Ltd
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Date
2013-04
Authors
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Publisher
Kampala International University, College of Economics and Management Sciences
Abstract
The objective of this study was to establish the effects of Initial Public Offer to the stock
exchange market in Uganda. This study was specifically looking at a case study of
National insurance Corporation Uganda (NIC) LTD, The management of public offers is
significant to investors, issuers and the government, which in this case represents the
interests of the masses and Welfare improvement, in the process of analyzing the price
patterns, to proactively manage their portfolios and develop strategies that lead to
superior gains on the market and improved welfare.
A Public offer if properly executed has the potential of raising large sums of inn money
that would otherwise not be possible through borrowing, and also improving incomes of
the citizens through such kind of investments. When the masses get involved in
planned or unplanned investment, it means that they do not leave large sums of their
incomes lying in the banks, but put it in productive use thereby improving their income
distribution.
An initial Public Offer however is not always a smooth sail. There are various I risks and
costs associated with floating shares; both to the issuers and the investors.
As more and more IPO's flooded the market in the recent years, there was need to be
wary of the imminent risks associated with IPOs and not
necessarily stocks trading in the secondary market. There are various
Opportunities to accelerate growth and take a big step for the companies
towards achieving their usual vision of market leadership. However, alongside
this natural excitement lies the reality of life on the public markets, the impact
Such a process has on the investors as well as government.
As a newly listed business, it's important for them to be aware of the risks, and
prospects that they now face. These can range from:
• Presenting unexpected results to the market
• Uncertainties associated with new initiatives, such as global expansion
To achieve full potential and deliver on pre-IPU promises companies must have clear
picture of the new environment- both the opportunities and the risks, it is also
paramount that they communicate this to the investors, i.e. the risks and prospects that
they put themselves in the line to face.
Description
A research dissertation submitted to the College of Economics and
Management Sciences in Partial Fulfillment of the Requirements for the Award of Bachelors
Degree in Business Administration (Finance and Banking Option) of Kampala International
University.
Keywords
Stock Exchange Market, Effects, Public, National Insurance Corporation, Uganda