THE COLLAPSE OF DISCOUNT SECURITY FIRM: THE SMALL INVESTOR MUST BE PROTECTED AT ALL COSTS AND SAFEGUARD FROM BEING TURNED TO A SUBJECT OF MANIPULATION BY THE ELITE.

            The Discount Security firm, one of the major licensed stock brokerage firms which trades in stocks at the Nairobi Stock Exchange has gone under.  It was quite unfortunate when the Capital Market Authority, the chief regulator of the financial market announced the decision to put the Discount firm under statutory management.

            It was quite unfortunate and disappointing to the small investor who was learning the ropes of investing his monies in stocks.  As this was evident, after the announcement by the Capital Markets, when disappointed investors flocked at the offices of the Discount firm to lodge their claims and to get assurance that their money wouldn’t disappear into thin air.

            Discount firm joins other major stock brokerage firms that have gone under, that’s Nyaga stock brokers, Francis Thuo and Co. among others.  The total collapse of these stock brokerage firms is turning out to be a total shocker to the small investor,  This is coupled by his thin knowhow and the way he saves to invest in stocks.

            But why is it that the monies that are attached to the small investors aren’t respected or why is it that his monies don’t have a sealed assurance and its played with to being the subject of manipulation?

            Remember the pyramid schemes that went up in smokes with investors millions worth of investment.  The pyramid schemes had promised the investors that they would double their savings according to how they will be contributing, but to the investors dismay it turned out to be an illegal and scandalous cash cow where they were duped by illegal transactions.

            And to add more fuel to the fire the international financial crisis seems to have crept and spilled over in our economy.  With the current trend it wont be contained it will lead to insolvence in the big and small corporations.  Everything seems to have skyrocketed to an unmanageable levels where any financial engagement means you have to get deeper into your pockets.

            But, its quite unfortunate that our economy which is a third world, which isn’t much endowed like the giant economies of USA and European countries which injected cash to rescue their financial markets.

            The stumbling of Discount Securities and other firms was attributed to many factors and among them were shoddy dealings within these firms.  Further investigations in the circumstances under which these firms collapsed it indicated that there were illegal transactions in their dealings concerning the investors consent.

            Another factor attributed to the collapse of Discount firm is that it tried to cash in with the hyped boom of Safaricom’s share and that meant that they opened many offices.

            But what measures is the Government lying down to protect the small investor from being turned to be the subject of manipulation?  What was the Capital Markets Authority doing as the chief regulator and the custodian?

            The Government needs to fastrack in streaming up its operations to protect the small investor.  The Capital Markets could have raised the red flag earlier, the moment it noted the collapsed firms balance sheets were inaccurate with illegal dealings.  Proper guidelines must be laid down to safeguard the small investor who for quite a long time has been turned as a subject of manipulation by the higher elites.

            The small investors needs to be protected at all costs and be advised accordingly so that their hearts aren’t dampened by the loss of their savings.  The poor investor is more averse to risk his money to any system that works magical to double his investments at higher rates whether it works or not.

 


pixelstats trackingpixel

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress
Flag Counter
Wordpress SEO Plugin by SEOPressor