Role of cma - share prices, Finance Basics

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Role of CMA - Share Prices

Role of CMA in determination of share prices

1. The CMA does not in any type of way influence share price of quoted companies.

2. The prices of that securities is determined via the supply and demand mechanism

3. Conversely, CMA may:

4. Advice on the issue price of new securities to the company

5. Alert the investors whether it feels such the issue price of specific securities is not in their interest

6. It guards against manipulation of insider trading and share prices.


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