What is Securities Trading?Buying and selling of quoted securities(shares, treasury bills, and bonds) on the Uganda Securities Exchange and other regional exchanges. Other services include: Immobilization of securities in the Securities Central Depository, nominee account services for individual investors and corporate, investment research and analysis for clients, and securities trading advisory.
Step 1: Visit the USE Easy Portal at http://scd.use.or.ug/ and click “Create an account”.
Step 2: Enter your details and sign up.
Step 3: Check your email for the activation token and click on the link to activate your account.
Step 4: Log in using the email address and password you used to sign up.
Step 5: Click “Link/Create SCD account”.
Step 6: Click on “Open a new account”.
Step 7: Fill in the details and then click on open account. (Select UAP Old Mutual Financial Services Ltd as your broker).
Step 8: Application submitted to broker for approval.
Uganda Securities Exchange has 17 locally and cross-listed companies. Locally listed companies sell their shares only in Uganda whereas cross-listed companies sell their shares both in Uganda and Kenya.
USE locally listed companies include; Stanbic Uganda Holdings Ltd, UMEME, Uganda Clays Ltd, DFCU, National Insurance Corporation Holdings Ltd, CIPLA Quality chemicals Ltd, New Vision Ltd, Bank of Baroda Uganda, BATU.
Cross-listed companies include; Centum Investments Ltd, East African Breweries Ltd, Equity Bank Ltd, Jubilee Holdings Ltd, Kenya Airways, Kenya Commercial Bank, Uchumi Supermarkets Ltd.
A share is a unit of ownership in a company, or a part ownership of a company. When an individual buys shares, he/she becomes a shareholder of the company. Large companies need to raise money for expansion and this can be done by selling part of their companies in the form of shares.
1. Participate in the running of a company - Voting Rights. Voting rights give you the power to decide on future company actions at the company Annual General Meeting (AGM)
2. Profitable Returns. If market conditions are favorable, the average annual returns for shares can be higher than that for bonds and many other investments. In addition, some companies pay out dividends which can make the investor money even if the share price does not rise.
3. Form of savings. Some shareholders commit a part of their monthly salary or earnings to buying shares. Share prices can increase by any margin unlike fixed deposits which have a fixed interest rate.
4. Limited Liability. One of the great advantages of buying stock is limited liability. Even though you own part of the company, you are not held personally liable if the company goes bankrupt and has to pay debts. The only money you can lose is the price that you paid for the stock. The Capital Markets Authority, CMA (capital markets regulatory body) monitors the market to ensure the safety of shareholders’ investments.
5. Enhances wealth through Capital Appreciation. You get to increase your wealth and worth as the share price of your shares rise over time E.g. you may buy shares in a company at a cost of UGX 100 each. If each share increases to say UGX 200 and you sell, you will have made a gain of UGX 100 per share (or 100%).
6. Gains through Bonus and Rights Issues. A bonus issue is when a public listed company gives free shares to its existing shareholders. A rights issue is when a public listed company gives its existing shareholders the right to buy more shares at a reduced (discount) price compared to the prevailing market price. In both cases, the shareholders can sell their newly acquired shares at the prevailing market price and make a profit but one has to be shareholder already to qualify.
- Fall in prices. Share prices are subject to fluctuations. These fluctuations could arise due to market conditions (demand and supply), company performance among others. Share prices may fall to a price lower than the price at which you bought at initially. Note: This becomes a loss, only if you sell at the time the price falls. Investors are advised to invest only part of their savings in buying shares, and for the long-term.
- Open an SCD account with us (UAP Old Mutual Financial Services Ltd).
- Deposit funds on our client trust bank account details
A/C Name: UAP Old Mutual Financial Services Ltd
A/C No.: 9030005716976
Bank Name: Stanbic Bank
Branch Name: Corporate
- Once the payment is done, kindly share with us proof of transfer of funds and we shall advise on the best investment options at the time.
Kindly note that there is a 2.1% brokerage commission on every transaction.
**N.B: This brokerage commission is the same for all brokers. This is set by both USE & CMA.
- Three colored passport-sized photos
- Copy of valid identification document(National ID/passport).
- Copy of a stamped recent bank statement(not more than 3 months)
For Corporates, SACCOs, NGOs, Investment Clubs, Churches etc.
- Copy of certificate of incorporation * Memorandum and articles of Association * TIN certificate * Board resolution to open SCD account
- 3 colored passport-sized photos of each signatory
- Copies of signatories’ valid IDs (National ID/ passport)