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Systemic Risk in NSE
Rank: New-farer Joined: 2/20/2015 Posts: 23
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The systemic risk in NSE is too big, I wonder who would put in their money in it  Still learning...
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it What systemic risk?$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 2/13/2011 Posts: 284 Location: Nairobi
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maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Substantiate
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Rank: Member Joined: 6/15/2013 Posts: 301
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maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Alot of money is pumped in the NSE and alot of financial gains are made. The NSE is not going anywhere.
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Rank: Member Joined: 4/25/2012 Posts: 110
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mulla wrote:maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Alot of money is pumped in the NSE and alot of financial gains are made. The NSE is not going anywhere. It would help if you are more elaborate as well as specific. When you say a lot of financial gains are made, in your reasoning how does that lead to 'NSE is not going anywhere' (sorry to quote it this way; the statement was also not readily comprehensible so I could not put it across in my own words) There is nothing as dangerous as an Idea, when there is only one Idea
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it They have been doing it since 1954. Keep watching from the sidelines as we make big mulla. Adios! "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Huyu ametumwa. Ignore her
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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obiero wrote:maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Huyu ametumwa. Ignore her How were you able to tell it is her instead of him?
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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MoneyMonger wrote:mulla wrote:maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Alot of money is pumped in the NSE and alot of financial gains are made. The NSE is not going anywhere. It would help if you are more elaborate as well as specific. When you say a lot of financial gains are made, in your reasoning how does that lead to 'NSE is not going anywhere' (sorry to quote it this way; the statement was also not readily comprehensible so I could not put it across in my own words) In the NSE we buy companies. Unless someone is telling us these companies - Equity, BAT, Safaricom, KCB, EABL, Bamburi, Kengen, Kenya Power etc. - are collapsing or are ridiculously overpriced (evidence needed) hiyo ingine yote ni pang'ang'a. Let people watch from the sidelines as others make money. Then in a couple of years they start complaining about widening gaps and calling people illuminati coz they have money they can only dream of 'natulikuwa nao pamoja. Kwani walitoa pesa wapi?' Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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Learnt something new. Only knew of other kinds of risk. Quote:DEFINITION OF 'SYSTEMIC RISK'
The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy. Systemic risk was a major contributor to the financial crisis of 2008. Companies considered a systemic risk are called “too big to fail.” These institutions are very large relative to their respective industries or make up a significant part of the overall economy. A company that is highly interconnected with others is also a source of systemic risk. Systemic risk should not be confused with systematic risk. http://www.investopedia.com/terms/s/systemic-risk.asp
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Rank: New-farer Joined: 2/20/2015 Posts: 23
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Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday Still learning...
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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maru101 wrote:Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday Elaborate further. NSE makes money from fees... Trading, listings and in future advising other stock exchanges. Life is short. Live passionately.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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maru101 wrote:Thank you @holycow , what I meant is that the company is too linked to the Kenyan stock market, a drop in it triggers a severe drop in its price, so too risky. However, for those that can partake it,buy the stock from NSE, you will be rich someday Now I am officially confused. Do you have a problem with all the shares in the NSE and stock trading in general or the NSE share specifically?? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: New-farer Joined: 2/20/2015 Posts: 23
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@sparkly, yes I know that,but who will consult them when the market is diving? There existence is highly dependent on the Kenyan stock market Still learning...
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Rank: New-farer Joined: 2/20/2015 Posts: 23
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@maichblack the NSE share specifically, as in NSE AS A COMPANY! Still learning...
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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maru101 wrote:@maichblack the NSE share specifically, as in NSE AS A COMPANY! wouldn't the reverse also be true. when the systemic risk happens and is at its worst. that would be the best time to buy NSE share, cause when market recovers, volumes picks up so will it. also look at JSE, that's how much room it has to grow The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 10/14/2011 Posts: 661
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holycow wrote:Learnt something new. Only knew of other kinds of risk. Quote:DEFINITION OF 'SYSTEMIC RISK'
The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy. Systemic risk was a major contributor to the financial crisis of 2008. Companies considered a systemic risk are called “too big to fail.” These institutions are very large relative to their respective industries or make up a significant part of the overall economy. A company that is highly interconnected with others is also a source of systemic risk. Systemic risk should not be confused with systematic risk. http://www.investopedia.com/terms/s/systemic-risk.asp Some semblance here of the systemic risk and contagion effect.
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Rank: New-farer Joined: 2/20/2015 Posts: 23
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Very true @aguytrying, Still learning...
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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The Jimnah Mbaru's syndrome is catching on quite fast. Giving vague warnings all over!
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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MoneyMonger wrote:mulla wrote:maru101 wrote:The systemic risk in NSE is too big, I wonder who would put in their money in it Alot of money is pumped in the NSE and alot of financial gains are made. The NSE is not going anywhere. It would help if you are more elaborate as well as specific. When you say a lot of financial gains are made, in your reasoning how does that lead to 'NSE is not going anywhere' (sorry to quote it this way; the statement was also not readily comprehensible so I could not put it across in my own words) If I understood mulla correctly, he meant the NSE "ain't going nowhere" yaani hakuna pahali tunaenda, tuko ngangari kabisa The harder you work, the luckier you get
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