A Stock Exchange is the physical location where the stock market in a country is traded, or the electronic platform used to effect such trade. In Rwanda; the Rwanda Stock Exchange is currently the only licensed stock exchange .It was established in 2011.
The capital market authority is the overall industry regulator in Rwanda. It was established by an act of parliament to promote, regulate and facilitate the development of an orderly, fair and efficient capital market in Rwanda.
It is known as the equity market. It is where the buying and selling of stocks takes place .It is the market in which shares are issued and traded either through exchanges or over –the-counter trading. It provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company’s future performance.
The Central Exchange Depository System can be compared to a bank where the records of all share holding of listed companies are kept. It is data base where investors can open accounts called Central Exchange Depository (CSD) and debit them with shares/bonds for the purpose of trading.
Central Depository Agent can either be a stockbroker or a custodian bank that has been granted authority by central bank (BNR) to open, close or transfer accounts in the central depository system on behalf of investors
These are shares which are most frequently traded (brought and sold) at the RSE, as distinguished from partly active shares in which trading is not frequent. The shares of most leading companies are active.