What is a Stock Exchange?
A stock exchange is an organised marketplace where securities such as shares, bonds, and derivatives are bought and sold (traded). Originally used for trading ordinary and preference shares, modern exchanges have expanded to include other financial instruments, hence are often called securities exchanges.
Stock exchanges have evolved from traditional floor trading using open outcry systems to fully electronic platforms today.
Stock exchanges:
Stock exchanges have evolved from traditional floor trading using open outcry systems to fully electronic platforms today.
Stock exchanges:
In some countries, an exchange is a self-regulatory organisation overseeing the actions of its members such as stockbrokers, sponsoring brokers, and issuers.
Structure of the Stock Exchange
Primary Market
Secondary Market
Key Functions of a Stock Exchange
A stock exchange provides several essential services:
What is the Role of a Stockbroker?
A stockbroker is a licensed member of the stock exchange who:
To operate as a broker, individuals or firms must acquire membership rights under the rules of the exchange. All public trading must go through a licensed broker.
What Does a Sponsoring Broker Do?
A sponsoring broker plays a vital role by:
The regulatory reform process is ultimately about building a resilient financial sector that protects consumers, encourages savings and investment, and supports Namibia’s broader socio-economic goals.
NAMFISA’s Role as the Regulator
The Namibian Financial Institutions Supervisory Authority (NAMFISA) is the Regulator overseeing stock exchanges in Namibia.
NAMFISA’s responsibilities include:
NAMFISA ensures that exchanges function transparently and contribute to an orderly financial system.
