Want to buy shares? Visit a Stockbroker

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Posted by on Wednesday November 28, 2012 at 10:43:56:

Based on a lot of comments users left about their intention to invest in the Nigerian stock market and not knowing how to buy, I believe this post would be helpful.

Buying shares in Nigeria's capital market is an investment action and there are 2 reasons why people buy shares - For capital gains and for dividends.

How do you buy shares from the Nigerian stock market?
You can do this in either of to ways:
1. Buying from the Primary market
2. Buying from the secondary market

Buying shares from the primary market
This is only possible when shares are publicly sold to the public and this normally happens during initial public offers. So when a company does a public offer in form of an i.p.o, you can buy shares directly from them through the banks by filling the application form and paying the exact cash for the desired shared value. The advantage of this is that you won't have to pay any stock-brokerage commission since you are not buying from them. The disadvantage of this is that it takes some time before the shares become allotted to you and for you to receive your share certificate. Shares are also not always available for purchase using this method since they are only available once in a while when it is offered to the public.

Buying shares from the secondary market
This is when you buy shares directly from the Nigerian stock market. To buy from the stock market directly you would have to be a dealing member and that's why most brokerage firms become dealing members and they are the ones that can buy shares on your behalf any time you want as long as there is a seller in the market. The secondary market is where a lot of shares are bought and sold on a daily basis 5 days of the week and this is where active investors can make or lose money on a regular basis.
You can buy the shares of any company that you want and the only thing is that you just pay a small commission based on the value of your transaction and that is about 2 to 3%.

What does it take to buy shares from the secondary market?
You just have to meet up with a stock broker and make an order as well as payment. You can get a list of registered stockbrokers in Nigeria from cscsnigeriaplc.com i.e. dealing members.
After your order has been placed, you can pay with cheque of bank deposit, get your receipt and wait for about 3 to 5 days for the shares to be bought in your name and at the pre-agreed price. You can always confirm your share investment independently by getting a stock statement from the CSCS LTD office.




Comments:


Re: Want to buy shares? Visit a Stockbroker Posted by www.agbonclick.com on Thursday June 19, 2014 at 3:30:2:

In fact, this site is loaded with so many great and life changing information. More grease to your elbow.





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