IMPLICATIONS OF INVESTMENTS IN SHARES AND DEBT INSTRUMENTS

Abstract

Shares and debt instruments are examples of securities or negotiable instruments which allows one party to have access to funding and the other hold investments in form of shares and/ or debt instruments. The party that issues share or debt instruments is usually the party with the shortfall of funding and the party that acquires the shares or debt instruments is usually in excess of funding and is known as an investor. This article therefore discusses the implications of investing in shares and debt instruments both from the issuer’s perspective and the investor’s perspective with emphasis on Zambian situations.

The information in article is entirely collected through secondary research, specifically from scholarly articles in accounting and finance, various text books in accounting and finance and journals from professional bodies such as the Zambia Institute of Chartered Accountants (ZICA) and Association of Accounting Technicians (AAT).