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Systemic Risk in NSE
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maru101
#11 Posted : Wednesday, March 04, 2015 8:46:58 AM
Rank: New-farer

Joined: 2/20/2015
Posts: 23
Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday
Still learning...
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sparkly
#12 Posted : Wednesday, March 04, 2015 9:45:29 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
maru101 wrote:
Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday


Elaborate further. NSE makes money from fees... Trading, listings and in future advising other stock exchanges.
Life is short. Live passionately.
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MaichBlack
#13 Posted : Wednesday, March 04, 2015 9:59:32 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,864
maru101 wrote:
Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday

Now I am officially confused. Do you have a problem with all the shares in the NSE and stock trading in general or the NSE share specifically??
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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maru101
#14 Posted : Wednesday, March 04, 2015 10:25:23 AM
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Joined: 2/20/2015
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@sparkly, yes I know that,but who will consult them when the market is diving? There existence is highly dependent on the Kenyan stock market
Still learning...
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maru101
#15 Posted : Wednesday, March 04, 2015 10:26:43 AM
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Joined: 2/20/2015
Posts: 23
@maichblack the NSE share specifically, as in NSE AS A COMPANY!
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Aguytrying
#16 Posted : Wednesday, March 04, 2015 12:37:38 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
maru101 wrote:
@maichblack the NSE share specifically, as in NSE AS A COMPANY!


wouldn't the reverse also be true. when the systemic risk happens and is at its worst. that would be the best time to buy NSE share, cause when market recovers, volumes picks up so will it. also look at JSE, that's how much room it has to grow
The investor's chief problem - and even his worst enemy - is likely to be himself
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Thiong'o
#17 Posted : Wednesday, March 04, 2015 1:16:24 PM
Rank: Member

Joined: 10/14/2011
Posts: 661
holycow wrote:
Learnt something new. Only knew of other kinds of risk.

Quote:
DEFINITION OF 'SYSTEMIC RISK'
The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy. Systemic risk was a major contributor to the financial crisis of 2008. Companies considered a systemic risk are called “too big to fail.” These institutions are very large relative to their respective industries or make up a significant part of the overall economy. A company that is highly interconnected with others is also a source of systemic risk. Systemic risk should not be confused with systematic risk.



http://www.investopedia.com/terms/s/systemic-risk.asp

Some semblance here of the systemic risk and contagion effect.
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maru101
#18 Posted : Wednesday, March 04, 2015 4:03:51 PM
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Joined: 2/20/2015
Posts: 23
Very true @aguytrying,
Still learning...
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whiteowl
#19 Posted : Wednesday, March 04, 2015 4:10:12 PM
Rank: Veteran

Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
The Jimnah Mbaru's syndrome is catching on quite fast. Giving vague warnings all over!
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kryptonite
#20 Posted : Wednesday, March 04, 2015 4:24:56 PM
Rank: Member

Joined: 2/1/2010
Posts: 272
Location: Nairobi
MoneyMonger wrote:
mulla wrote:
maru101 wrote:
The systemic risk in NSE is too big, I wonder who would put in their money in itd'oh!


Alot of money is pumped in the NSE and alot of financial gains are made. The NSE is not going anywhere.


It would help if you are more elaborate as well as specific. When you say a lot of financial gains are made, in your reasoning how does that lead to 'NSE is not going anywhere' (sorry to quote it this way; the statement was also not readily comprehensible so I could not put it across in my own words)



If I understood mulla correctly, he meant the NSE "ain't going nowhere" yaani hakuna pahali tunaenda, tuko ngangari kabisa
The harder you work, the luckier you get
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