Lusaka Securities Exchange (LuSE)


What is a stockbroker?

A stockbroker is a LuSE member , licensed by SEC Zambia to buy and sell securities on the LuSE on behalf of investors. To start the process of investing on the LuSE, the stockbroker will request the investor to open an account with them

How do I get hold of a stock broker?
As of 31 April 2022, there are eight stock broking firms in Zambia.Their full contact details are listed at the back of the brochure.
What are the requirements for opening an account with a stockbroker?
In order to open an account with a stockbroker you will be required to produce the following:
– A national registration card/passport A document showing proof of physical address e.g. a lease agreement with a landlord, title deeds to a property or utility bill

– Two passport size photos Note that brokers will require that a minimum amount be deposited with them when opening the account.
Is a stockbroker a bank?
No! Any monies collected from the investors are held separately from the stockbroker’s own funds.
What are the broker charges for transacting on the LuSE?
The current LuSE guide for transacting on the LuSE is 1.375% of the value of the transaction. For large transactions, the amount can be negotiated down.When investing a small amount you must weigh your decision carefully to see if the amount you invest can absorb the commission. If for example, you want to invest K20 and the minimum brokerage commission is K10, then what you will end up investing is K10 because the broker will automatically deduct their commission. This will eectively reduce the amount you invest by half
After opening an account with a stockbroker for the first time what happens next?


The stockbroker will advise on which investments that are listed or quoted on the LuSE. They will be able to advise you based on your investment preferences. Once you make a decision, the broker will be able to transact on the LuSE market on your behalf
What is the T+3 trading system?
The T+3 trading system is the three day process required for a transaction involving shares to settle on the LuSE. Literally translated, it stands for “Transaction + 3 business days”. In the case of debt securities,”T+1″ is the trading system. In other words the transaction settles on the next business day
When is the LuSE open for business?
The LuSE trades on weekdays (Monday to Friday) excluding public holidays. Trading occurs from 11:00 to 14:00hrs.
What do I do if I want to sell out from any investment?
Guide you through the whole process. You must bear in mind that if you are selling shares in a company that is quoted on the LuSE you will have to pay a Property Transfer Tax (PTT) of 3% in addition to your brokerage commission.
Monitoring your investment on the LuSE

How to monitor one’s investment on the LuSE

It is very easy to track one’s investments on the LuSE. Closing share prices can be obtained freely from the LuSE website (, Facebook and Twitter pages (Lusaka Securities Exchange). They are also aired on weekdays on the Zambia National Broadcasting Corporation (ZNBC) Main Evening News The LuSE also has value added subscription services in the form of the daily stock news,The weekly stock News andmonthly news Flash.

The subscription rates for the same are as follows:

Daily Stock News – K3.50 per copy/K882 Annual subscription.

LuSE Weekly Stock News – K4 per copy/K208 Annual subscription.

Monthly News Flash – K25 per copy/K300 Annual subscription.
It would also be benecial for you to engage with your broker on a regular basis to keep up with various market trends.
What is a stock exchange?
A stock exchange is a public marketplace where securities are bought and sold i.e. traded.
What law governs the operation of the LuSE?
The operations of the LuSE are governed by the SECURITIES ACT No. 41 of 2016. The implementation of the Securities Act is the role of the Securities and Exchange Commission (SEC) Zambia.
What are securities?

The term security refers to a fungible, negotiable financial instrument that holds some type of monetary value. Simply put, Securities are instruments for raising finance by the shareholder or a company. There are two types of securities
offered on the LuSE: Equity and Debts securities.
Equity securities, which are also known as shares or stocks, give one part ownership of a company and with it a right to a share of a company’s dividends.
Debt securities represent debt issued by an organisation. They can be issued by a company or government. They are usually issued for a fixed term and the amount of capital represented has to be paid back to their owner, at the end of the debt security term. Debt  securities usually carry an
interest charge (coupon) which is paid to their holders at specific periods during the debt security’s term.

What is a trade?
A trade is the action of transacting in securities on the LuSE. A trade is eected when buyers and sellers match at a given price.
What is the Primary market?
The primary market is a source of new securities. Primary market oerings of securities occur when securities are oered for sale to the public for the rst time. E.g. an Initial Public Oering (IPO).
What is the secondary market?
The secondary market is where investors buy and sell securities already owned. Secondary market trading of securities occurs when securities that have been bought through a primary market oering are traded on the LuSE
What is the central share depository?
The central share depository (CSD) is a computerised central point in which all the shares of listed and quoted companies and all listed debt securities are is a type of Warehouse of records for the holders of instruments that are tradable on LuSE. An account is opened for every holder of a given instrument. On that account is the name of the instrument, the name of the holder of the instrument, a record of how much of a given instrument an individual owns when the instrument was purchased or sold.
What is a Listed Company?

A listed company is a company which is able to issue its securities for trading on the LuSE. To be listed, the company is characterized by the following:

– Is a public limited company (Plc)

– Has met the LuSE Listing Requirements

– Has had the listing approved by the LuSE board and have paid the listing fee commensurate with the market value of their issued capital
What is a Quoted Company?
A company that has registered its issued equity securities with the Securities and Exchange Commission (SEC) Zambia, will automatically be quoted on LuSE. Although a quoted company has not met the requirements to be listed on the LuSE, it is expected that it will work towards being listed.
What is an ISIN code?
Each security on the LuSE assigned an International Security Identication Number (ISIN) which identies each security uniquely. This is one of the features of the modern stock exchange. LUSE because the sale nancial securities numbering agency in Zambia on 16th June, 2003 by partnering with the Association of national numbering agencies (ANNA) and assigns ISIN’s.
What is an Initial Public Offering (IPO)?
An IPO occurs when a company oers its shares to the public for the rst time. When a company decides to have an IPO, it is said to be “Going public”. Going public broadly describes the process through which a company converts itself from private limited company to a public limited company (or plc) and subsequently sells its shares to the general public via an IPO over a licensed exchange.
How safe are my investments In a LuSE instrument?

An investment in LUSE instruments are among the safest investments that one can make. All companies that have their securities listed or quoted on the LuSE are required to publish in print media, information that can materially affect the
value of the price of one ‘s securities. In addition, all are required to abide by the LuSE’s Corporate Governance code which has guidelines on how the management and directors of listed and quoted companies must conduct their affairs. Failure to publish information that can materially affect a
company’s share price, as well as not adhering to LuSE’s Corporate Governance code can result in severe penalties to
the directors and management of a company that has instruments that are listed or quoted on the LuSE.

How does one benefit from investing in shares?

There are principal ways in which a party benefts from
investing in shares.The first is through the payment of a
dividend, whilst the second is via the price appreciation of the shares that are bought, the share’s capital gain. Taken together, these two factors determine your return on holding shares In a company. If for example you bought a share for K10 and the share price has risen to K12 and you
have received dividends worth K1 from the company that issued the shares, then your total return from holding the share is 30% the K2 price appreciation + the K1 dividend/K10
price paid for the share

What is a dividend?
A dividend is usually a cash payment to the shareholders of a company has at the end of the year. Sometimes dividends can be issued by companies in other forms such as bonus shares. Dividends are issued at the board’s discretion.
How are dividends divided up amongst a company's shareholders?

Dividends are divided up among ordinary shareholders according to how many shares they own in a company. For example, if a company pays dividends worth K1,000,000, a
party who owns 10% of the company shares will receive
dividends worth K100,000 (10% of K1,000,000). Companies usually quote their dividend payment to shareholders per share, e.g. In the financial year ending 2021, Company X will
issue a dividend of K 1.00 per share

How often does a company pay dividends to share - holders?

This is entirely up to the directors of the company. Generally, most companies payout dividends at least once a year. If a company has been operating favorably, it may pay out dividends twice a year – usually after every six month period.
A dividend that is paid out during the course of a company’s operating year is known as an interim dividend. A dividend that is paid out after the close of a company’s financial year is
known as a final dividend

What is capital gain/loss?

Capital gain/loss is the price appreciation/depreciation in the
value of the shares held by an investor. It is the difference
between the price at which an investor bought the shares
and what the shares are worth today. If for example the price
of a share was K10 when an investor bought it and it is worth
k15 today, then the person who bought the shares has
enjoyed a capital gain of 50% (K15-K10=K5). If however the
price of the share has fallen to K5, then the investor that
bought shares at K10 has a net capital loss of 50%

Are capital gains and dividends taxed?
There is absolutely no tax on capital gains and dividends on the LUSE
How does one investing in debt securities
There are two ways a party can benet from holding debt securities .The rst is through payment of interest on the debt securities ,whilst the second is through gain in price of a debt security from the time it was rst bought, the debt securities capital gain.
What recourse do I have that my interests as the holder of LuSE investment instruments are not being adequately represented?
You can lodge a complaint with SEC Zambia. The SEC Zambia is empowered by the Securities Act to ensure that the interests of investors are protected.
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