Broker-dealers are vital to the capital markets in Guyana, facilitating investment opportunities for a broader population in light of the economic potential from oil discoveries. Their role is to democratize access to wealth creation, which is essential for addressing economic inequalities. Stakeholders emphasize the need for an inclusive capital market to ensure that all citizens can participate in and benefit from economic growth.
Broker-dealers play a pivotal role in the capital markets, facilitating the buying and selling of securities for investors. With the influx of wealth into Guyana, particularly due to its burgeoning oil sector, there is a growing movement among stakeholders to cultivate a supportive environment for broker-dealer operations. This financial dynamism is prompting an increasing number of Guyanese citizens to explore wealth-building opportunities. Stakeholders argue that as Guyana endeavors to enhance its capital market framework, broker-dealers are essential to this ecosystem. Angus Young, CEO of NCB Capital Markets, emphasized during a recent conference in Guyana the democratizing potential broker-dealers bring to wealth creation for all citizens. He stated, “It is also the role of the broker-dealer to democratise access to wealth creation opportunities to every citizen of Guyana. The broker-dealer will also bring fresh capital from the region into Guyana as investors seek to participate in the fastest growing economy in the world.” Mr. Young further pointed out that capital markets should not be exclusive to affluent individuals, as this kind of economy can perpetuate inequality. He remarked, “An economy that grows without the full participation of all, a wide base of its citizenry, is also one where inequalities will thrive. To truly democratise wealth, we need an inclusive capital market ecosystem where every citizen can participate and benefit.” Additionally, he stressed that enabling easier access to capital markets will benefit the overall economy by allowing ordinary citizens to invest in businesses and own shares, thus actively engaging in the nation’s growth. He noted, “Broker-dealers therefore have a responsibility to create investment products tailored for the range of investors… The restricted availability of capital is often cited as one of the main factors inhibiting growth in the private sector. Broker-dealers are structured to tolerate more risk.” Moreover, the Guyana Securities Council (GSC) is currently reforming its framework to facilitate the growth of the broker-dealer sector within the country.
The emergence of broker-dealers is crucial for capital markets as they serve as intermediaries that enable easy transactions of securities for investors. With the recent economic changes driven by oil discoveries, Guyana is experiencing an influx of capital, leading to significant growth in investment opportunities. A responsive capital market, supported by broker-dealers, is essential in ensuring that the newfound wealth is equitably accessible to all citizens, rather than being concentrated among the wealthy elite. This approach aims to foster a more inclusive economic environment and mitigate inequalities.
In conclusion, broker-dealers are fundamental to the development of a vibrant capital market in Guyana, particularly in light of the recent economic opportunities presented by the oil industry. As articulated by industry leaders, broker-dealers have the responsibility to democratize wealth access for all citizens, enabling their participation in economic growth. By enhancing the capital market framework and ensuring diverse investment products are available, Guyana can create a more inclusive and thriving economic landscape.
Original Source: radiojamaicanewsonline.com
