What a security is, and the shares you can hold

Module 01 / 5 · 60 min · Free preview

Learn what makes an instrument a security under Ethiopian law, how it is held and transferred, and what ordinary and preference shares give their owners.

In this module you will learn to

Explain what a security is under the Capital Market Proclamation and why transferability matters
Distinguish registered, certificated and dematerialised holdings and the role of the central securities depository
Compare ordinary and preference shares and the rights each carries
Calculate a dividend yield and explain the difference between par value and market value

Built on

Erudite Africa training module: Ethiopian Context, topic 2.c Securities, Levels 1 and 2 (October 2026)
Capital Market Proclamation No. 1248/2021; Commercial Code Proclamation No. 1243/2021; National Bank of Ethiopia Proclamation No. 1359/2025
ECMA Directives No. 980/2024 and 996/2024; Directive No. 1030/2024 and No. 1009/2024 as reported; ESX Rulebook (December 2024)
NBE directives as listed in the lessons: SBB/89/2024, SBB/92/2024, SBB/95/2025, SBB/98/2025, SBB/78/2021 (reported), FXD/04/2026
NBE Monetary Policy Committee release No. 7 (July 2026); Ministry of Finance Public Sector Debt Statistical Bulletin No. 56

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.