AN EVALUATION OF FACTORS CONTRIBUTING TO THE STOCK MARKET LIQUIDITY CONSTRAINTS OR COMPANIES LISTED ON THE NAMIBIAN STOCK EXCHANGE

Abstract

In 1992, the Namibian Stock Exchange (NSX) was established, amongst others, to facilitate investment in capital markets. Stakeholders have raised concerns that liquidity is low on the NSX. The African Economic Outlook has pointed out that the NSX faces the challenge of few locally issued securities and low liquidity. On its part, the Ministry of Finance is of the view that the NSX is characterized by low levels of liquidity. The aim of this research was to evaluate factors contributing to the stock market liquidity constraints for companies listed on the NSX.