This part of the report shows the potential
demand and supply sides of the financial market.
Demand side (investor base)
There is a growing demand for securities markets in Ethiopia.
others the following are identified by Yishak (2000).
Asset portfolio adjustment
Thus far Ethiopians used to hold their assets in the form of cash, bank
deposits, physical assets in the form of land, buildings, livestock, precious
metals (like gold, silver), vehicles, and hard currency.
These are the
traditional forms of asset holdings available to Ethiopians.
securities markets will create another form of asset holding and incentives to
diversify asset portfolio for individuals and companies.
Investors can buy
securities of listed companies and diversify their investment in marketable