There is only one stock exchange market in Kenya i.e. The Nairobi Stock Exchange.
Stock is a group of shares in a public limited company
Stock exchange market: is a market where stocks from Quoted companies are bought and sold
A Quoted Company: is a company that has been registered (listed) as a member of the stock exchange market
Securities: this could either refer shares or documents used in support of share ownership.
Initial Public Offer (I. P. O): refers to situations in which a company has floated new shares for public subscription (Has advertised new shares and has invited members of the public to buy them).
Secondary market: The market that deals in second hand shares i.e. the transfer of shares from one person or organization to another.

• Facilitates buying of shares- it provides a conducive environment to investors who want to buy shares in different companies.
• Facilitates selling of shares- it creates a market for those who wish to sell their shares.
• Safeguarding investors’ interests- it monitors the performance of the already quoted companies and those found not meeting expectations are struck off. Companies who want to be quoted must also attain a certain standard of performance.
• Provides useful information- it provides timely, accurate and reliable information to investors which enable them to make decisions on the investments to make. The information is passed on through mass media and stock brokers.
• Assist companies to raise capital- it assists companies to raise capital by creating an environment through which companies issue new shares to members of the public in an IPO.
• Creation of employment- it creates employment for those who facilitate the buying and selling of shares eg stock brokers, stock agents etc.
• Raising revenue for the government- the government earns revenue by collecting fees and other levies/ dues from activities carried out in the stock exchange market.
• Availing a variety of securities- it avails a variety of securities from which an investor can choose from. The market therefore satisfies needs of various investors eg investors who wish to buy from different companies can do so in the market.
• Fixing of prices- the stock exchange market is in a position to determine the true market value of the securities through the forces of demand and supply. This is of great importance to both the buyer and the seller.
• Measures a country’s economic progress- the performance of securities in the stock exchange market may be an indicator of a country’s economic progress e.g a constant rise in prices and volumes of securities traded within a given period of time would indicate that the country’s economy is positively growing.
• Promotes the culture of saving- it provides investors with opportunities to channel their excess funds. Such people act as role models to other members of the society who may emulate them thereby promoting a saving culture.

- This refers to the sharing of worlds resources among all regions i.e where there are no boundaries in business transactions.
- Some companies referred to as multinationals, have branches in many parts of the world e.g coca-cola company.
- Globalization has been made possible and effective through the development and improvement of information and technology organization; with technologies like the internet and smartphones.

This occurs when two independent business enterprises combine to form one large organization
An amalgamation can either be vertical or horizontal.
Amalgamation can be achieved through; holding companies, absorptions, mergers, and cartels.

This is the process of transferring / selling state owned corporations to public limited companies or private investors. This is done by the Government selling their shareholding to members of the public. The main aims include;

• mprove efficiency
• Generate revenue for the government.
• Reduce government control
• To break monopolistic practices
• To reduce government expenditure on corporations that relies on government subsidy.

• Check off system
• Burial Benevolent Funds (B. B. F)
• Front Office Savings Account (FOSA)
• Franchising
• Trusts
• Performance contracts

Government involvement in business activities is one of the commercial duties it owes its citizens.
It is the one that provides the necessary environment for investments to be undertaken by itself, or by the local and foreign investors

• Producing goods and services
• Distributing goods and services
• Advising producers and traders
• Promoting trade and economic development
• Protecting consumers against exploitation by producers and traders
• As a consumer of goods and services

• To prevent exploitation of the public by private businesspersons especially in the provision of essential goods and services such as sugar, transport, communication etc. the Kenya Bureau of standards (KEBS) regulates the quality of goods consumed in Kenya.
• To provide essential goods and services in areas where private individuals and organizations are unwilling to venture because of low profits/ high risks involved.
• To provide essential goods and services which private organizations and individuals are unable to provide due to the large amount of initial capital required b e.g. generation of electricity, establishment of airlines etc.
• To attract foreign investment by initiating major business projects
• To stimulate economic development in the country e.g. by providing social services
• To provide goods and services which are too sensitive to be left in the hands of the private sector e.g. provision of firearms.
• To create employment opportunities by initiating projects such as generation of electricity.
• To prevent foreign dominance of the economy by investing in areas where the locals are not able to
• To redistribute wealth where returns are very high
• To prevent establishment of monopolies

This refers to Rules and restrictions the government requires business units to follow in their business activities. Through this method, the government ensures high quality goods and services and puts in control measures to protect consumers from exploitation. The government regulation measures include;

• Licensing - A license is a document that shows that a business has been permitted by the government to operate. It is usually issued upon payment of a small fee. Some of the reasons why the government issues licenses include;
  
  • Regulating the number of businesses in a given place at any given time to avoid unhealthy competition.
  • To control the type of goods entering and leaving the country.
  • To ensure there are no illegal businesses.
  • To ensure that traders engage only in trade activities that they have been licensed for.
  • To ensure that those who engage in professional activities meet the requirements of the profession.
  • To raise revenue for the government.
• Ensuring standards/ enforcing standards - The government regulates business activities by setting standards that businesses should and ensuring that the standards are adhered to. To achieve this purpose, the government has established bodies such as; Kenya bureau of standards (KEBS) and The ministry of health.
• Legislation - The Government may come up with rules and regulations (laws) that regulate business activities.
  

The government takes keen interest in training and advising people in business about business management strategies and better ways of producing goods and services.
The government offers these services through seminars and courses.
This is mainly done by the Kenya Business Training Institute (K.B.T.I).
Reasons for government training include;

• To expose businesspersons to modern developments in management
• Introduce modern technology and skills in management
• Educate the business people on efficient methods of operating a business e.g., effective methods of advertising and keeping books of accounts.
• Expose business people to problems/ challenges facing them and their possible solutions for example, problems of raising capital and identifying investment opportunities.
• Impart proper business ethics e.g. good customer relations and honesty.
• Creating awareness of the available profitable business opportunities in their environment
• Expose business people to government policies regarding business activities in the country.
• Educate business people on how to use available resources to minimize costs and maximize profits.
• Expose people to other opportunities that exist in the import and export market.

This is a government initiated and supported policy to encourage local business people to enter into business.
This is aimed at increasing the volume and variety of goods and services traded in.
Trade promotion is classified as either external trade promotion or internal trade promotion.

• The purpose of external trade promotion is to encourage local business people to enter into the export market.
• It also intended to attract foreign investors into the country.
• In Kenya, external trade promotion is done through the department of external trade in the ministry of trade and industry.
• External trade promotion may also be done by Commercial attaches.
• Commercial attaches are officers sent by the country's government to work with the embassies in foreign countries as support staff in the field of commerce.

Duties of commercial attaches
- Explore and identify new markets for more export opportunities.
- Research and analyse markets for exports from their home countries.
- Keep statistics of products such as volumes, packaging size and method of manufacturing.
- Attend meetings, seminars and workshops on trade patterns of the countries and keep data for new markets of exports.
- Publish and advertise their country’s exports in business journals and magazines.
- Select buyers, agents and distributors of the home country’s exports.
- Inform traders in their home countries of the standards required for exports.
- Assist sales missions from their home countries by organizing educational tours for them.
- Organize visits to trade fairs and exhibitions for business people from their home country.
- Make detailed reports on commercial activities that may help improve the exports of their countries.