Final year dissertation:
An Emerging market:
« Bourse Régionale des Valeurs
Mobilières »
Market stock exchange.
by
Ahoussou-Kouadio Jean-Christian
B.A in Business Administration
Pathway: Finance
B.A. (Hons) Business Administration.
·Abstract
Find a solution for the funding of the small business in
Africa become a problematic for me since my internship in one of the most
established bank in Ivory Coast, the BIAO bank - subsidiary of the Fortis
group,.
I held two positions as an assistant.
One in the Small and medium enterprises and also in the
Industry department, I have been assessed to analyse financials statements of
small companies in those sector who where looking for loans.
The other position was in the Stock market Trade department I
was assessed to assist the Trader during the trading session on the BRVM market
stock exchange.
During my experience in the trading department, I take part of
the commercial arrangement for the sell of government bonds' subscriptions.
All the subscriptions were completed in 12 days, with a lot of
non-institutional investors.
My research is composed by a critical examination of the small
business-funding situation in this area: BRVM market, a detailed analysis of
Euronext / the BRVM and Alternext and the building of a statement enable small
business to be quoted in the market.
Few books were used for this dissertation because it is
topical subject.
Acknowledgements
Financial problems in Africa are an everyday reality;
businessmen and women are faced with high rate loans provide by the bank.
This is a more effective fact in country like Ivory Coast,
which have political disturbance that why I choose this subject.
I would like to thank all the persons who have given their
time to help me during the research and the redaction of this dissertation. A
special thanks to these following persons:
Mr Kouakou Jérôme, Chief of the Biao (Bank in
Ivory Coast) Trade Department - Abidjan,
Mr Seydina Mohamadou Rahssoul Tandian, General director of the
Wararene (African Rating Agency) - Dakar,
Mr Ajjay Mandal , my research adviser. South Bank University -
London
Mr Jean Michel Kamenan, junior Analyst, Ecobank - Abidjan
I dedicated this document to my father, who always provides to
me good support and piece of advise for my studies.
·Table of Contents
·ABSTRACT
2
ACKNOWLEDGEMENTS
3
·TABLE OF CONTENTS
4
INTRODUCTION
6
A. PROBLEM
FORMULATION:
7
B. WHAT ARE THE
CONSEQUENCES OF THESE PROBLEMS?
8
LITERATURE REVIEW
12
THE STOCK MARKET
14
A. EURONEXT
GROUP
16
A. A
model of successful integration:
18
B. The
specificities of this distinctive market.
20
a. Euro-list, the united market.
20
b. Liffe, the second derivatives European
market.
22
Conclusion about Euronext and the stock market:
23
B. ALTERNEXT A
CONTROLLED MARKET BUT NOT REGULATES.
25
A.
INTRODUCTION
25
B. THE ORGANISATION
OF ALTERNEXT.
26
1. A simplified access for companies.
27
2. Terms to be listed on Alternext:
28
3. The protection of the investors and
transparency.
28
4. The listing sponsor.
29
5. Enhancement of liquidity.
29
Conclusion alternext
33
THE WEST AFRICAN ECONOMIC AND MONETARY
UNION AND HIS MARKET THE BRVM.
1
A. THE WEST AFRICAN
ECONOMIC AND MONETARY UNION
3
Ø The Assembly of Heads of State and
Government
3
Ø The Council of Ministers
3
Ø The Banking Commission
3
Ø The Regional Council of Public
Saving and Financial Markets.
3
B. A BITE OF
HISTORY THE MARKET
4
C.
OBJECTIVES
6
1. Increase the rate of saving:
6
2. The return to first role of the
banks:
6
3. Reinforcement of the capitalization of
the companies:
7
4. The reduction of cost of financial
intermediation:
7
D.
ORGANIZATION
8
1. A public component:
8
2. A private component:
8
E.
DESCRIPTION:
9
F. THE
TRADING:
10
G. THE LISTING
REQUIREMENT:
11
H. BRVM
INDEXES
13
A.
Index Calculation Method
13
a. Formula
13
b. Calculations and Distribution
14
c. Index Adjustment
14
d. Information about the market
17
I. CENTRAL CLEARING
HOUSE
18
Mission
18
FINANCING THE COMPANY IN THE MARKET:
21
Concerning the BRVM:
21
A. IMPROVEMENT OF
THE ACTIONS OF THE PUBLIC AUTHORITIES AND AUTHORITIES OF THE
MARKET
22
Intervention of the authorities public
and of the market
22
a. The public authorities:
22
b. Reinforcement of the working tool of the
crempf.
23
B.
Guarantees reforms and tax policies
25
a. The reform of the guarantee.
25
b. The Tax policy
26
C.
Popularisation of the Stock Market Culture
35
B. IMPROVEMENT OF
THE SERVICES OF THE BRVM:
37
1)
Reduce the tariffs:
37
2)
Ease of the procedure and the access
condition:
37
3)
Innovative product development
38
C. THE
RATING
42
A.
Definition:
42
B.
Origin:
42
C.
Advantages:
44
D. The
initiative to be rated:
46
A framework of a rating
process:
48
GENERAL CONCLUSION
49
Bibliography
52
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