LEGAL AND ECONOMIC ISSUES IN STOCK SELECTION

The capital market is replete with many stocks and shares, which offer investors the advantage of diversification of investments. The market provides a variety of instruments, which could serve the specific needs and objective of investors. These instruments are generally called Securities.1 The Investment and Securities Act (ISA) does not define the term ‘investment’, This is a grievous omission for a principal constituent of the Statute not to be defined to' bring it within the scope of the Statute. It therefore means that investment must be looked at from a general perspective before determining what investment in relation to securities is all about.