Assessment of Potential Equity Investors and Stock Marketing Strategies: An Empirical Study in the Case of Ethiopia

A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock. Though several studies, by different individuals and institutions, to assess the rationale behind establishing stock has been undertaken on the exchange market in Ethiopia, no one has examined how corporations should finance their assets in the absence of efficient capital markets. Thus, the objective of the study was to assess potential equity investors, and thereby develop marketing strategies for share companies’ equity instruments in Ethiopia. The finding shows that the potential equity investors in Ethiopia could be ranked as financial institutions, diasporas and institutional investors, respectively. Accordingly, the marketing strategies that firms should employ include approaching the potential investors physically, advertising using different mass-media and Internet, and participating in national and international business forums.