Companies raise finance through the issue of several classes of securities. Of the various classes, the classes below are available for issue through the Uganda Securities Exchange
Equity securities generally referred to as shares, comprise ordinary shares and preference shares. All the equity securities currently listed on the Exchange are ordinary shares that account for most of the turnover of the Exchange. Ordinary shares are equity shares issued by the company to shareholders. Ordinary or common shareholders (i.e. holders of ordinary shares), being owners of the company, have voting rights and receive dividends at the discretion of the company. However, the payment of dividends is not mandatory even if a company records a profit in the year. Equity securities are listed either on the Main Investment Market Segment (MIMS) or on the Growth Enterprises Market Segment (GEMS).
FIXED INCOME SECURITIES (DEBT SECURITIES)
Debt securities listed on the Uganda Securities Exchange include government (treasury) bonds and corporate bonds. They represent loans to an entity (such as a government or corporation) in which the entity promises to repay the bondholders the total amount borrowed. That repayment in most cases is made on maturity although some loans are repayable in installments. Unlike shareholders, holders of bonds and notes are not owners of an entity, but its creditors. In return for the loan, the entity will usually compensate the bondholders with interest payments during the life of the bond. The interest rate on bonds can be a fixed or floating rate.
Fixed Income Securities also include commercial paper. Commercial paper is a money market security issued (sold) by large corporations to obtain funds to meet short-term debt obligation, and is backed only by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note.
Raising finance through the Uganda Securities Exchange can be done by issuing any or a combination of the above securities through our three market segments:
A) Equity Securities
i) MAIN INVESTMENT MARKET SEGMENT (MIMS)
The Uganda Securities Exchange’s equity segment comprises of the Main Investment Market Segment and the Growth Enterprises Market Segment. Equity securities generally referred to as shares, comprise ordinary shares and preference shares. Click here for more information about raising finance through the MIMS
ii) THE GROWTH ENTERPRISE MARKET SEGMENT (GEMS)
The Uganda Securities Exchange (USE) launched the Growth Enterprise Market Segment (GEMS). GEMS enables start ups, small and medium firms to raise substantial initial and ongoing capital, while benefiting from increased profile and liquidity within a regulatory environment designed specifically to meet their needs. Click here for more information about raising finance through the GEMS
B) Debt Securities
iii) FIXED INCOME SECURITIES MARKET SEGMENT (FISMS)
The fixed income market segment comprises of commercial paper, corporate bonds and government bonds. Click here for more information about raising finance through the FISMS