Key stakeholders of capital markets

MOSTindividuals and organisations have direct or indirect roles to play in capital markets. Remember, capital markets are markets for raising long term capital. A complete capital raising process involves the interaction of various stakeholders. Below are some stakeholders and their roles: Issuers — Issue securities to raise capital. Issuers include local and global corporates and Governments. Issuers are the borrowers. Investors — Include individuals, insurance companies and pension funds. Investors are the savers. Exchanges — Offer platforms upon which securities are traded. They process orders and match buyers with sellers. Zimbabwe has two registered exchanges i.e. the Zimbabwe Stock Exchange (ZSE) and the Financial Securities Exchange (FINSEC). Regulators — Oversee market operations based on market legislation. The apex regulator for Zimbabwe’s capital market is the Securities and Exchange Commission of Zimbabwe (SECZ). Analysts — Serve as impartial reviewers of securities offered / traded on capital markets. They analyse published financial statements, review industry data and usually give recommendations either to buy, sell or hold. They also engage senior company management to assess the financial health and future prospects of publicly traded companies. Intermediaries — act as the link between two parties in a capital market transaction. Intermediaries are licensed or registered by SECZ e.g. asset managers, stockbrokers. A list of licensed / registered market intermediaries is accessible from SECZ website: <http://www. seczim.co.zw/regulated-entities>. Media — Comprise various channels of communication including newspapers, television, radio, and internet. They communicate company developments as well as capital market trends. Media plays an important role in providing wider investor coverage. Government — Formulates and coordinates policies through national budgets, mid-term fiscal policy reviews and related policy strategies aimed at creating an enabling investment environment in support of overall economic activity. Others — Include industry trade groups who lobby policy makers for regulatory changes; primary, secondary and tertiary institutions which train future market participants.