The Kenya Association of Stockbrokers and Investment Banks is an association that represents the interests of Kenyan stockbrokerage and investment banking companies. It was initially founded as the Association of Kenya Stockbrokers (AK
These are shares that are trading below their true value. There are many reasons for this; the industry could be out of favour, or the company is not well known, or it has not yet caught the fancy of investors.
Ex Right
The holder of shares purchased ex rights is not entitled to an upcoming already declared rights issue, but is entitled to future rights issues.
Payout Ratio
The payout ratio indicates how much of a company’s earnings are actually paid out as dividends to shareholders. It is calculated by dividing the dividends per share by the earnings per share. Example; a very low payout ration may indicate that the company is keen to retaining its earnings rather than pay out dividends.
Convertible Preference Shares
These are preference shares that give the holder the additional right to convert them into a specified number of ordinary shares under specified conditions.
Controlling Interest
This is holding a sufficiently large number of shares in a company to enact changes (or control) in its policies. Ownership of 50% plus one of the equity shares in a company can give an individual or group the voting power to influence a company’s decision. If the shareholding is dispersed among people who do not bother to vote (usually small shareholders), controlling interest of the company can be achieved with shareholding of a lot less than 50%
Investor Word
Undervalued Shares
These are shares that are trading below their true value. There are many reasons for this; the industry could be out of favour, or the company is not well known, or it has not yet caught the fancy of investors.
Ex Right
The holder of shares purchased ex rights is not entitled to an upcoming already declared rights issue, but is entitled to future rights issues.
Payout Ratio
The payout ratio indicates how much of a company’s earnings are actually paid out as dividends to shareholders. It is calculated by dividing the dividends per share by the earnings per share. Example; a very low payout ration may indicate that the company is keen to retaining its earnings rather than pay out dividends.
Convertible Preference Shares
These are preference shares that give the holder the additional right to convert them into a specified number of ordinary shares under specified conditions.
Controlling Interest
This is holding a sufficiently large number of shares in a company to enact changes (or control) in its policies. Ownership of 50% plus one of the equity shares in a company can give an individual or group the voting power to influence a company’s decision. If the shareholding is dispersed among people who do not bother to vote (usually small shareholders), controlling interest of the company can be achieved with shareholding of a lot less than 50%