Bond versus Equities Market

THE bond and equity markets are best differentiated by unique characteristics which are summarised below:

Equities Market

Equity buyers are shareholders in the underlying company issuing the equity security

Shareholders are part owners of the underlying business in proportion to the investment made

Shareholders are paid last upon liquidation of the underlying business

Returns to shareholders are called dividends

Dividends are not guaranteed but are at the discretion of the Board of directors

Shares have no maturity date

Shares have higher risk and return on investment than bonds

Market price of a share is determined by the expected value on current and future earnings

Shareholders have the RIGHT to attend and vote at general meetings

Primary source of long term equity capital

Debt Market

Buyers of bonds are known as bondholders

Bondholders are creditors or lenders to the underlying business issuing the bond in proportion to the amount of money lent.

Bondholders have priority on repayment upon liquidation of the underlying business

Guaranteed interest income

Bonds have a defined outstanding lifespan to maturity after which they are redeemed

Bonds have lower risk and return on investment than equities

Market price of a bond is based on credit rating, term to maturity, interest rate and yield

Bondholders have no RIGHT to attend and vote at general meetings

Primary source of long term borrowed capital

Upcoming EGM/AGM

Hippo Valley Estates Limited, Meikles Hotel, September 26, 1200 hrs

Meikles Limited, Parklands, 26 Greenhithe Lane, September 26, 0900 hrs

Seed Co Limited, Administration Block at Stapleford, September 27, 1000 hrs

National Tyre Services Limited, Boardroom, Corner Cripps and Seke Roads, September 27, 1430 hrs

Bindura Nickel Corporation Limited, Chapman Golf Club, September 28, 0900 hrs

ZECO Holdings, NIAG House Board Room, September 29, 1400 hrs

Star-africa corporation Limited, 45 Douglas Road, Workington, September 29, 1100 hrs