Equity market
Overview
ESX Equities Market is the division of ESX that allows issuers of equity securities to raise long-term, patient, capital through the issuance of equity securities, i.e., most known form being shares. ESX provides the link between companies in need of finance and investors seeking profitable investment opportunities. This process involves the issuing, listing, and trading of securities. Companies in need of capital to start, grow and expand their business would issue their securities on the exchange, while investors would buy them as investment.
ESX’s Equity Market Provides a regulated listing and trading venue for issuance and trading of various equity instruments that are approved and registered by the Ethiopian Capital Market Authority (ECMA). These include shares and other forms of equity instruments, real Estate Investment Funds (REIFs) / ‘REITS’, exchange traded funds (ETFs).
ESX Equity Market offers issuers and investors an organized and supervised marketplace where trades are made based on an approved set of rules and regulations. This ensures the transparency, integrity, efficiency, and reliability of the market with the aim to protect and enhance confidence by local and international investors on the Ethiopian capital markets.
ESX enhances the overall liquidity of the equities market by ensuring investor risks are managed through strict listing and trading rules and procedures, and adopting state of the art trading, clearing and settlement technologies.
As an intermediated market, whereby broker-dealers play a key role in facilitating access to the market, ESX also regulates and enforces actions on trading members.