Economics of Capital Investment in Khartoum Stock Exchange Market
30 Pages Posted: 6 Aug 2012 Last revised: 8 Aug 2012
Date Written: August 6, 2012
The conception that financial markets in a country are parts of modern economic systems is generally accepted. However, in an underdeveloped economic structure there can be other targets o hidden activities for them. Such assumptions are provoked under totalitarian economic systems that impose cartel monopolies in a autocratic compradorism that own most of the companies and their stocks. The institutional structure of the prevailing economic system avails negative cost/benefits dealings to continue unaffected as the main profits have to come from other resources, e.g., money laundry. The private sector has to be monopolized in order to sustain the collusive network dominating a national stock market. The straight conceptions of the function of stock market divert from encouraging savings and investment to generating other under the table dealings. Moreover, the limited number of companies that have shares dealt in the Khartoum Stock Market due to restrictions in registering new companies give more shadows for the authenticity of economic viability and modus operandi of the market per se. Stock markets are presumed to be a chain between the development of the financial institution and scale popular investment activities. Moreover, it represents a median between people and banks as saving institutions. Thus, if there is a stock market's monopoly by certain companies or financial institutions, they may not potentially act profitably which calls for the basic assumption here they act for monetary laundry.
Notes: The downloadable document is in Arabic.
Keywords: Sudan, Stock Market, Institutional Structure, Monopoly, Institutional Cartel, Money Laundry
JEL Classification: A00, A10, M5, M50, N2, N20, N27
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