The ABC of share trading Capital markets are one of the major engines driving the world economy today. Yet most of us do not understand what goes on there. Starting from this month, New African will publish a regular, monthly column exclusively on the capital markets, explaining how they work. The objective is to encourage our readers, especially the Africans, to take more interest in capital markets. In this opener, Paul Osei-Kuffour, an expert on capital markets, takes us through the ABCs of equity investment.
Every investor has a reason for making an investment decision.
It is not easy to suggest which of the above-mentioned expectations is the most important. It will depend on the precise circumstances of the particular investor. Moreover, the fundamental investment objectives should aim to find an appropriate balance between risk and reward. Thus an investment with a highly uncertain level of return is classified as risky. Equity share capital is the ultimate risk-bearing capital of a company.