1. What is a stock exchange?

This is a place/market where stock/shares or other tradable instruments are traded. In Uganda we have the Uganda Securities Exchange (U.S.E.).

  1. What is the difference between the USE and the CMA?

The USE is a place where stocks/shares are traded or market place for buying and selling of securities whereas the CMA is a regulatory body set by an act of parliament to oversee the dealings in the capital markets.

  1. How do I buy a share?

Any investor can buy shares through a U.S.E. member stock broker who represents him/her at the exchange. You MUST have a shares’ account(Securities Central depository account) opened FREE of charge by your broker.

  1. How do I (Investor) benefit from buying shares?

There are many ways through which an investor can benefit from buying shares;

a. When the company in which the investor bought shares has made profit and the directors declare a dividend for all shareholders on the register.

b. The buyer can also benefit from a capital gain. Where the share value of the stock the investor owns increases, he/she can then sell their shares to make a gain.

c. When the company offers bonus shares, the share holders’ quantity increases for which both the bonus and original shares have the same market value.

       6. Why do I (investor) have to go through a broker?

This is the market structure of the USE that is intended to create order on the trading floor and provide standards for investment advice to the investing public.

        7. How do I (investor) know that a company in which I own shares has made profits or not?

All the companies that are listed on the USE by definition become public companies and therefore they are required to publish their financial results at the end of every year or in the middle of every year as agreed by the board. These results must be made public by printing in the newspapers and annual reports which are available to shareholders. Through such publications, shareholders can get all the necessary information about them.

       8. Do listed companies ever stop having their shares traded, and if they do, how are shareholders compensated?

It is extremely rare, but yes they do. This can be an arrangement by the directors to accept a takeover by any one buyer who offers to buy the companies’ shareholding at a price higher than the prevailing market price. In another case, de-listing can occur by order of the Exchange or as a penalty for failure to adhere to the exchange’s rules and regulations.

       9. If I (investor) lost my share certificates, do I lose my shareholding too or, can I get duplicate share certificates? If so, how and where can I get them?

No you do not lose your shareholding. You need to go to either the broker or registrar and fill an indemnity form and submit it to the registrar with a police letter and a new certificate will be issued to you.

      10. If an investor dies, can his heir have any claim for his father’s investment?

Yes, his heir can claim, after presenting death certificates and signed documentation from the executor/estates administrator.

      11. If I had an immediate/urgent problem, can I sell my shares immediately and have cash as soon? If not, what do I do?

Yes, you can sell your shares through your broker depending on the demand and supply in the market. ONLY shares in the electronic account with the broker can be sold.

     12. How do I (investor) know the price of any security and can’t the broker over price it to make a difference/gain from me?

The prices are quoted in our daily market reports, press and at the Exchange on a daily basis. Therefore the broker cannot over charge you. Also, if the broker does charge a client over and above the market rate, that broker is subject to fines and penalties from both the USE and CMA.

    13. Where do sellers of securities collect their money after the trade?

Their brokers give them their money after the transaction has been concluded. With the automated trading platform, a seller can be settled after 3 working days.

    14. What is the Stock Exchange all about?

It is a place where companies that have offered their shares or bonds to the public are listed and also buying and selling of those securities takes place. It’s also regulated by the CMA.

    15. How long does it take for clients to get their money after the sale?

With the automated trading platform, the clients will take at most 5 working days for the money to clear on their account after sale. Another alternative is to ask Crested Capital for a prompt settlement in case of an emergency to be attended to.

    16. Does it necessarily mean that if clients’ money spends a longer time in investment makes more money?

Not necessarily. If the company’s share price increases over time or if the company makes profits and declares dividends then the investment would have made more money. However, if the shares price fall below the price the client bought the shares and the company makes losses then the investment would not make more.

    17. Who issues securities on the Exchange?

Any company that would like to raise capital from the public and meets the USE listing rules can issue securities.

    18. What is the proof of ownership of shares?

The share certificates and/or the statement from the securities central depository (SCD) account. All shares held on the certificate cannot be traded or even get bonus entitlements until when they are transferred to the SCD account.

    19. What is the SCD account and how do I get one?

The SCD account is the Securities Central Depository account opened at a stock broker’s premises with a valid ID and 3 colored passport photos. This account holds only securities listed on the USE and is FREE of charge.

    20. Who is a stockbroker and what is his role?

A stockbroker is a licensed member of the USE who buys and sells securities on behalf of his/her clients.

    21. How do brokers benefit from this business? Isn’t it a trick to con money from your clients?

No, it’s not a trick in any way. Brokers get money by charging a small commission of 2.1% from the total value of the consideration from their clients. This commission is not charged on new shares that have not been traded on the stock exchange before like those offered at IPO or Rights Issue.

    22. If an investor was defrauded, what do I do?

If a licensed member did the fraud, then the client can inform the USE and CMA that will take action against the fraudulent broker. The client can also get compensation in case the broker can’t settle the problem.

    23. Can i ( investor) sell my shares for cash to another person without going through the exchange? Or if i wanted to offer/give/donate to a friend, do i have to go through the exchange.

No you cannot sell your shares without going through a broker. Donations to friends also have to go through a broker to effect transfer of ownership. But for donations to Charities or nonprofit making organizations, it still has to go through a broker but there is a possibility for a reduced commission if accepted by the CEO of USE.

    24. What happens when a transaction has failed? Do brokers refund the client whole money or they reduce it by the value of their commission?

The brokers have to refund the whole amount. Commissions are only paid to brokers after a transaction takes place.

   25. How can I as an investor influence the decision of the company in which I have bought shares?

Every listed company holds an annual general meeting (AGM) at the end of their financial year for which they (BOD) give accountability of the operation of the company. A shareholder is free to attend and also ask questions



  1. Hello Mr Baldwin
    I sent a e-mail request for an application form to open a share account.Could someone be kind enough to reply to my e-mail request.Just wondering whether your emailing system works.I live abroad. When we try to ring from abroad none of your lines seems to be working let alone your hot line . Looking forward to hearing from you.

  2. Eyotre Julias4th May 2018 at 12:42 pm

    Thank you you for the broad information on the page. I would wish to do investment on shares and be an active trader(i.e. buy- sell-buy shares on daily basis). Will crested capital do that on my behalf and how does it work so i can make profits? Thank you

    • Hello Julius,Crested capital is ready to transact for you.However note that to make a profit with shares,the price should be higher than you bought at which may not be the case on a daily basis.Please visit our office at First floor Impala House Kimathi Avenue so we can help you get started.Carry with you four passport photos and a valid id for account opening.

      • Eyotre Julias8th May 2018 at 3:33 pm

        Great, thank you for the quick response. I will surely come over to your office sooner than later.

  3. hello, i would like to open up an SCD account and also buyer shares, but my only question is how do i get my money after selling?

    • Hello JB.Thank you for leaving this message.
      The process of opening an SCD Account involves you giving us your personal details.You will be required to give us your bank account where your dividends or proceeds are paid.


  4. How do I get more information on how this trading of shares work??

  5. How long does it take for an investor to recieceve acontract note?

  6. If i would like to diversify my portfolio, can i have shares of all the companies i am interested in one SCD account?
    I am a resident in a foreign land, but i would like to authorize someone to do the account opening and operation on my behalf, do i need to notarize the documentation as well when i am opening the account?

    • Dear Nicolas,thanks for reaching out to us.
      1.YES,you can buy shares in all the listed companies using one SCD Account.
      2.Another individual can not open an scd account on your behalf.you can download account opening forms from this very website, notarize and courier them to us together with a copy of your valid id and passport photos.

  7. Rukiri Joseph9th May 2016 at 7:24 am

    How many bids can one place when buying government securities?
    Also how likely is it that people with less money get to purchase these securities when buying the minimum number of bids?
    Thank you

    • The minimum amount money for one to take part in a treasury bill or bond auction is Ugx100,000.one is free to participate in every auction provided you have the minimum amount.

  8. Thank you for the good information you have provided on this page.
    I wanted to buy shares in some companies currently listed on USE. However I am currently staying out of Uganda. Is it possible to submit my necessary documentation online?. How should I proceed..
    Thank you

    • Hello James, Before you buy shares,you need to open a shares account with us.we will require from you 3passport photos and a valid id.account opening is free of charge .we are located at kimathi avenue impala house first floor.

    • Hello James,
      when you are abroad we send you account Opening forms-and you have them notarized by a lawyer and then you courier them to us with 3 passport photos and a copy of your id.

  9. ssebugwawo john kenny29th March 2016 at 7:18 pm

    i want to sell my shares in umeme,how do i go about and how much is per share now

    • Hello John,to sell your shares you need to place your order to sell with us by filling a purchase order form provided at our offices together with a copy of your id.each share of UMEME is currently at Ugx550.we are located at impala house first floor ,kimathi avenue or you can as well as email -info@crestedcapital.com for more assistance.

  10. Sarah Nsiime27th March 2016 at 5:54 pm

    When is the best time to buy shares in a particular company?

    • Hello Sarah I hope you are well. The purchase of shares depends on a number of factors associated with the market and also may vary with various tastes and preferences by various clients. If it is ok you can come by our office premises for a more lengthy conversation on the topic or share your email address with us so that you can receive more information. Thank you

  11. KAGGWA BUKENYA DENNIS14th January 2016 at 12:22 pm

    how are you, how much money do i need to start buying stocks? the initial amount.


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