Page 19 - Abyssinia Business Network ABN August 2019

in Ethiopia: An Analytical of the respondents respond that
Knowledge and awareness about Review” mention enhanced establishment of stock exchange
stock exchange market savings mobilization, promote in Ethiopia will have the following
It is mandatory that all of the respective efficient financial system, advantages:
mangers in the share companies improve capital structure, allow • It contributes to the
should have to have knowledge in de-concentration of ownership, economic growth of the country
relation to the stock exchange but a improve accounting and auditing • It will give public confidence
number of shareholders do not have standards, provide effective tools to invest in share companies
knowledge of stock exchange and for monetary and fiscal policy • It can be used as one
this implies that there is a low level and help privatization efforts alternate source of finance
of public awareness about securities as an advantages or benefits of • It will attract more domestic
markets in Ethiopia and the degree establishing security market and foreign investors
of awareness by potential investors (stock exchange). Other scholars • It will provides a ready
of investments in stocks and bonds also agree that establishment of market for investors to buy and sell
affects demand for securities is not stock exchange contributes to shares
satisfying. economic growth, it encourages • Promotes saving habit
investment, protect investors by • Improve monetary and
Prospect of establishing a stock upholding rules and regulations, fiscal policy as well as accounting
exchange market help traders buy and sell quickly and auditing standards
and efficiently and so on. • It will facilitate efficient
Tessema (2003) in his article financial system and privatization.
entitled “Prospects and Challenges Advantages of establishing It is believed that the current economic
for Developing Securities Markets a stock exchange: Majority condition of Ethiopia ready for

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