THE BENEFITS FOR LISTING SECURITIES WITH THE DAR ES SALAAM STOCK EXCHANGE IN TANZANIA: DISADVANTAGES FOR LISTING SHARES

THE BENEFITS FOR LISTING SECURITIES WITH THE DAR ES SALAAM STOCK EXCHANGE IN TANZANIA: DISADVANTAGES FOR LISTING SHARESWhile there seem to be many advantages, equally there exist some opposing forces as to the extent of such benefits of listing. For example the Virgin Company Limited of the United Kingdom, deregistered its shares from the London Stock Exchange for what it named improper management of resources by the new shareholders. The Virgin Company had the view that it had experienced difficulties in terms of progress after listing compared to the period before listing its shares with the LSE (ProShare, 2001). Below are some disadvantages:
a)    Prolonged period for decision making, even in circumstance of urgent need for such decision. This is because meetings are scheduled on specific dates and numbers of such meetings are known.
b)    Weak ideas in meetings because the qualification for purchasing shares are essentially money rather than skills in that area. Hence when the majorities shareholders are not familiar with the entire business the possibility of not assenting to viable solutions become slim, hence distorting the performance of the company.
CONCLUSION
There are many benefits for listing securities as discussed and narrated in this article. The sustenance of these benefits depends on many other factors which can be summarized as fidelity of the firms regarding all transactions of the business. Rules and regulations that are set in benefiting investors is one thing, and fidelity in observing the rules and regulations set by the firms is another. Both the CMSA and the DSE monitor the market trading activities to detect possible market malpractices such as false trading, market manipulation, insider dealing, short selling and so forth. DSE is responsible for on the line/on-site surveillance while the CMSA for online/off-site surveillance. The DSE can suspend any time offers and bids that are deemed to be suspicious (DSE, Ibid). Efforts to monitor and/or supervise could be reduced through observance of the rules and regulations as disclosed by CMSA and the DSE. The emphasis of fidelity assumes the fact that market performance implies both an intuitive sense of crowd psychology and a fundamental understanding of the context in which the game is played. Trading is more than arithmetic concerns in economics, accountancy and market models. There is an art to it as well. In this vein Norman reveals that a mere presence of good rules and regulations summed up as laws does not necessarily guarantee just practice of business-it depends solely on the level of observance of such rules and regulations by the players in the entire business. Hence, observance of laws which will culminate enjoyment of benefits as provided in rules and regulations will depend on the way human behave.