http://www.jarushub.com/frequently-asked-questions-about-the-nigeria-stock-exchange/

Anyone who has surplus funds after current living expenses must make an important decision. Should these surplus funds be used to improve current living stands? Or should it be invested to earn more income or build capital for the future? If investing is the choice, one of most popular avenues over the years has been common stocks (or shares). This questions and answers session is designed to clarify the myths about the stock market.

What is a Stock Exchange?

A stock exchange is an arrangement whereby large and small investors alike buy and sell through stockbrokers, securities (shares and bonds) of companies and government agencies. This arrangement could be through Computer, Internet, Telephone, Fax, Trading floor etc. The Stock Exchange provides the essential facilities for companies and government to raise money for business expansion and development projects through investors who own shares in corporations for the ultimate benefits of the economy.

When was the Nigerian Stock Exchange set up?

The Nigerian Stock Exchange (formerly The Lagos Stock Exchange) was incorporated in 1960, as a company limited by Guarantee, with Head Office in Lagos and branches in some cities like Abuja, Kano, Onitsha, Port Harcourt, Ibadan, Uyo, Yola etc, each providing a trading floor.

http://www.jarushub.com/frequently-asked-questions-about-the-nigeria-stock-exchange/



Who are the owners of the Nigerian Stock Exchange?

The owners (shareholders) of the Nigerian Stock Exchange are financial firms and institutions. In exceptional cases, individuals with integrity and experience in finance and business are also accepted as shareholders.

How does a person apply for membershp?

Application is made on behalf of an applicant, by two members of the Exchange, and one of whom must be a council member.

How is the Nigerian Stock exchange governed?

It is governed by a team of shareholders at an Annual General Meeting. These shareholders are referred to as the council (Board) of the Stock Exchange. The council is presided by over by a President, while the daily administration is led by a Director General.

What are the duties of the council?

1.Makes policies.
2. Enforces discipline among members.
3. Makes rules and regulations for dealing members.
4. Grant quotation and listing for securities.
5. Protects interest of the investing public
6. Considers complaints about and among the members.

http://www.jarushub.com/frequently-asked-questions-about-the-nigeria-stock-exchange/


Who are the principal agents at the Nigerian Stock Exchange?

They are the Stockbrokers and issuing houses.

Who is a stockbroker?

A stockbroker is a person or a firm who buys and sells securities on behalf of investors for a commission called brokerage?

What is an issuing house?

As a member of the Stock Exchange, it is a firm that helps to prepare prospectuses and to sell securities offered to the public by government and companies.

They are Investment Banking institutions that assist companies in raising funds in the capital market by acting as sponsors for these securities. They may sponsor the issue as a broker ( selling the security at the best possible effort basis) or as an underwriter (by taking up those securities not taken by the public).

What are securities?

Securities are written or printed documents by which the claims of the holder in specified property are secured. They could be shares, bonds and debentures.

http://www.jarushub.com/frequently-asked-questions-about-the-nigeria-stock-exchange/



What are stocks and shares?

Stock and shares represent ownership interest in a business. It also refers to units of capital in a company.

What are bonds and debentures?

They are legal instruments representing a promise by the company or the government to pay back a loan, plus a certain amount of interest over a definite period of time.

Who is an investor?

A person or an institution who uses his savings or borrowing to buy securities.

Why do people buy shares?

To share in the fortunes of the companies they invest in. Some people buy shares with the hope of seeing their capital grow. I will advise you to read my last article on the benefits of shareholding.

With how much money should I venture into the Stock Market?

Most income levels can venture into the stock market. Some wealthy people and institutions invest millions and billions of Naira but lower income investors can participate with as little as One thousand Naira.

emmanuelewumi:
http://www.jarushub.com/frequently-asked-questions-about-the-nigeria-stock-exchange/

Anyone who has surplus funds after current living expenses must make an important decision. Should these surplus funds be used to improve current living stands? Or should it be invested to earn more income or build capital for the future? If investing is the choice, one of most popular avenues over the years has been common stocks (or shares). This questions and answers session is designed to clarify the myths about the stock market.

What is a Stock Exchange?

A stock exchange is an arrangement whereby large and small investors alike buy and sell through stockbrokers, securities (shares and bonds) of companies and government agencies. This arrangement could be through Computer, Internet, Telephone, Fax, Trading floor etc. The Stock Exchange provides the essential facilities for companies and government to raise money for business expansion and development projects through investors who own shares in corporations for the ultimate benefits of the economy.

When was the Nigerian Stock Exchange set up?

The Nigerian Stock Exchange (formerly The Lagos Stock Exchange) was incorporated in 1960, as a company limited by Guarantee, with Head Office in Lagos and branches in some cities like Abuja, Kano, Onitsha, Port Harcourt, Ibadan, Uyo, Yola etc, each providing a trading floor.

Op, I have been following your threads on Stock Exchange for sometime now. I commend you on your wonderful job in respect to educating the public on the need to invest in stock market.

However, I have an inquiry to make. My late mum bought some shares at #99,000 in 2007 with First Registrars. I have the photocopy of the shares certificate and a receipt of dividend which was posted to her sometime ago. Please, what could be the current value now, if it is liquidated? Again, is it advisable that I leave it for future sake?

Thanks!

OfficialSam:




Op, I have been following your threads on Stock Exchange for sometime now. I commend you on your wonderful job in respect to educating the public on the need to invest in stock market.

However, I have an inquiry to make. My late mum bought some shares at #99,000 in 2007 with First Registrars. I have the photocopy of the shares certificate and a receipt of dividend which was posted to her sometime ago. Please, what could be the current value now, if it is liquidated? Again, is it advisable that I leave it for future sake?

Thanks!

You can only get exact quantity of her shares from the Registrar, which is Meristem Registrars.

You need a letter of administration before you can be attended to, because the investment does not belong to you

emmanuelewumi:


You can only get exact quantity of her shares from the Registrar, which is Meristem Registrars.

You need a letter of administration before you can be attended to, because the investment does not belong to you

I know about a letter administration and I have that already. I don't know how the stock market works or how shares accrues. She invested 99k about 14 years ago. So I'm only asking if liquidated, how much can be the estimated value at this present stage? And what can I expect if I leave it for about 5 years to come?

OfficialSam:


I know about a letter administration and I have that already. I don't know how the stock market works or how shares accrues. She invested 99k about 14 years ago. So I'm only asking if liquidated, how much can be the estimated value at this present stage? And what can I expect if I leave it for about 5 years to come?

The dividend statement shows she has about 4,900 shares in First Bank Holdings.

If that still holds, current price is about N11, so selling would yield about N54,000.

If you choose to hold, current dividend is about 50 kobo per share each year so expect to receive about N2,500 each year.

You should have your own investment stance since you know your own current financial issues or otherwise.

If it's me, I'll process the L of A to transfer over, then file and forget for a while, collecting the small small dividends. First Bank is a 'blue chip' bank, and too big to fail in the Nigerian system.

It has very healthy trading volumes as well so you will have live pricing to guide your decision when you come to sell.

Good luck.

OfficialSam:


I know about a letter administration and I have that already. I don't know how the stock market works or how shares accrues. She invested 99k about 14 years ago. So I'm only asking if liquidated, how much can be the estimated value at this present stage? And what can I expect if I leave it for about 5 years to come?

Go to the Registrar, you will told the quantity she has and what to do

emmanuelewumi:



Go to the Registrar, you will told the quantity she has and what to do

I really want to go into stock market trading or investment I have knowledge with financial markert,I will like where I can see information, you said 1000 how much will I get and the duration of time

skylane:
I really want to go into stock market trading or investment I have knowledge with financial markert,I will like where I can see information, you said 1000 how much will I get and the duration of time

Invest in your financial education, that is the starting point and visit the stock market threads on Nairaland.

emmanuelewumi:



Go to the Registrar, you will told the quantity she has and what to do

Thanks. I'm in Uyo, Akwa Ibom State now. Do you know if they have an office here?

jabolo:


The dividend statement shows she has about 4,900 shares in First Bank Holdings.

If that still holds, current price is about N11, so selling would yield about N54,000.

If you choose to hold, current dividend is about 50 kobo per share each year so expect to receive about N2,500 each year.

You should have your own investment stance since you know your own current financial issues or otherwise.

If it's me, I'll process the L of A to transfer over, then file and forget for a while, collecting the small small dividends. First Bank is a 'blue chip' bank, and too big to fail in the Nigerian system.

It has very healthy trading volumes as well so you will have live pricing to guide your decision when you come to sell.

Good luck.

This is very informative and elaborate. It's Just the information I wanted. Thank you so much.