Every Bank seems to be selling shares. How do we reconcile Bank mergers and buying of Bank shares - plus or minus to investors?

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Soludo's directive that Banks should raise their capital from N2bn to N25bn necessitated Banks to sell shares even at very cheap prices.

Left for me, I would say that investing in shares is very good because one stands to benefit from the dividend that would accrue after one year and now that Banks are merging, it means bigger dividend and even share bonus, so it is in everyway, a plus to the investors.

I would advise everyone to buy shares now before the prices go up. MannyBank share for example is N1.10k per unit. It means one can just become a share holder by as small money as from 1,100.00 - thats
1,000 units x N1.10.

I think that's cool or what do you say?

Well, the thing is no matter how cheap a share is, it can go up or go down. i bought Nigerian Breweries at 60 naira last year and now it is 27 naira or something. i bought Zenith at N10.90 and now it is about N15. I personally dont rush after Public Offers for now because the time before you can start trading for me is too long. I had to wait for more than 2 months before GTB's shares became active for trading on the stock market!

Anyways, my advice is that before you buy a share, do a little research. Talk to people with some investment experience. Look at the company's performance in the past, etc. You know, the kind of info you find out before you buy a dress - the quality, the size, if it's really worth it. etc. etc.

That's what i think..

Lolz common, ok before i proceed into critisizing buying shares especially shares of the banking sector in Nigeria. I would like to ask on how the returns are like in terms of percentage of what you actually invested? What are their past histories like, in declaring profits and sharing dividends etc?

And besides that i think bioye has said it all.
Shares are risky!! Everything is, but shares are exceptional.

Sometimes I cannot but be amazed at the way people make business decisions. This is an investment and should be treated as such. Like Kazey said, what is the likelihood of making any returns? I for one would advise against investing in Banks right now. For one, you dont know which bank will be left standing. SO if you invest in Bank A and then CBN in its all mighty wisdom, decides that Bank A should not continue after the consolidation, your investment is down the drain.

And like any secondary school Economis student will tell you, there are certain factors which would determine the likelihoood of a booming economy and do not lets deceive ourselves, Nigeria lacks this factors.Besides, the Banking environment is very much under the influence of Goverment legislation and if tomorrow someone decides otherwise and makes some laws that do not favour the banks, all the mega profits being declared will be a thing of the past.

Personally, I say NO, CAPITAL NO, this is not the time to invest in Banks in NIgeria

Safe investment.