Understanding the Capital Market was held on June 21, 2025. It is a first of its kind lighthouse seminar facilitated by Tewedaj Gezahegn, CEO of HST Investment Advisory Service. The capital market is a long-term investment platform where shares, bonds, and various securities are exchanged. In the 16th century, the Dutch East India Company—now recognized as the world’s first stock-issuing company—developed an ambitious plan to expand its fleet and began selling “shares” to raise funds.

Investors benefit from the capital market in several key ways. It offers opportunities to diversify wealth, gain partial ownership in businesses, and actively participate in broader economic growth. Small businesses also stand to gain significantly. The capital market provides them with access to much-needed funding, enhances their credibility, and supports their potential for expansion.

Listing a business on the capital market offers several strategic advantages. It opens access to a broader pool of capital, enabling companies to secure the funding needed for growth and innovation. It also boosts visibility and reputation, attracting potential investors, partners, and customers. Most importantly, participation in the capital market promotes long-term sustainability through transparency, sound governance, and strategic planning.

How can you be part of the Ethiopian Capital Market?

• Buy stocks
• Invest in bonds
• Participate through mutual funds or savings schemes
• Open an investment account

Major Takeaways

• The capital market is essential for long-term investment and economic growth.
• It provides significant benefits for both investors and businesses.
• Investors can diversify their wealth and participate in the economy.
• Businesses gain funding, credibility, and growth opportunities.
• Participation in the capital market promotes sustainability and transparency.

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