Prospects for a Stock Options Market in Kenya

Abstract

The research constitutes a study on the possibility of a stock options market within the Kenyan economy. The research is based on the response obtained from the Nairobi Stock Exchange, Capital Market Authority, Stockbrokers, Investment Advisors, Corporate shareholders and a general analysis of the conditions underlying the development of a stock options market in Kenya. According to the research carried, out there exists a need for stock options trading and the investors are willing to use stock options to minimise stock price risk. However there lacks conditions necessary for the development of stock options market such as low volume of share transactions, market capitalisation and number of listed companies. These factors my impende development of stock options market.