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How derivatives will change value of stocks

An employee makes notes in front of an electronic stock information screen inside the Nairobi Securities Exchange Ltd (NSE) in Nairobi. [Courtesy]

Investors betting on stock prices will now have the chance to shape the price of securities by predicting what they expect it to rise to be on a future date.

This follows the launch of the derivatives market yesterday. The Nairobi Securities Exchange (NSE) has also set aside Sh130 million in a settlement guarantee fund if a player defaults.

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