The Douala Stock Exchange offers two main types of financial product:
Stocks and Shares
The trading of stocks and shares is the most well-known activity of the Stock Exchange. A share represents a right of ownership or an equity investment in a company.
There are various types of shares. The most well-known are ordinary shares. These grant to persons who hold them the right to vote at shareholders meetings. Each share held give right to one vote.
Shareholders also have a right to a profit, if the financial situation allows the company distributes a part of its profits to shareholders. This is known as a dividend.
Shareholders also have a right to information. Shareholders are entitled to know what the company is doing, and they may look at certain documents such as annual reports, decisions taken at annual meetings, etc.
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Bonds
A bond is a loan note or debt instrument. The saver or the investor who buys a bond obtains a debt instrument which represents a fraction of a loan granted to the issuer. This could be the State, a local organisation or a private or public company.
As well as the repayment of the loan at the due date, the saver or investor will receive a fixed interest payment at regular intervals.
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