Uganda Securities Exchange as a Medium of Trade: To What Extent Have the Private and Public Sectors Embraced It?

Mshilla Maghanga^1, and William Quisenberry²

¹Faculty of Business and Development Studies, Gulu University, P. O. Box 166 Gulu, Uganda

²Department of Management, SMC University, Zug, Switzerland

Cite this paper:
Mshilla Maghanga and William Quisenberry. Uganda Securities Exchange as a Medium of Trade: To What Extent Have the Private and Public Sectors Embraced It?. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2015; 3(3):96-109. doi: 10.12691/jbe-3-3-2

Abstract

The purpose of this paper is to review the extent to which the Uganda Securities Exchange has been embraced as a medium of trade and investment by the public considering that a well-functioning stock market enhances prospects for long-term economic growth. Only seventeen companies are trading on the Exchange in its 17 years of existence. This study sought to explore the extent to which the Exchange has been embraced locally. A cross-sectional design that involved both quantitative and qualitative study approaches was adopted. The study sample was drawn from employees of government departments, listed, and unlisted companies. Data were collected using questionnaires and interview guides. It was established that, as much as the Exchange grew over time, trading was still lukewarm with very many potential companies reluctant to list on the USE. Generally, investors are still apathetic about the Exchange. It is recommended that the Government should support the marketing, automation, and modernisation of the Exchange; and the Exchange should exploit the stock market trading potential to entice more investors to it.

Keywords:
stock market economic growth UGANDA securities exchange medium of trade

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