RabbiDoracle:


Did you carry "mgbo" or omokiriri when you were doing your first degree? A Google search could have helped you solve some of these things. Though a member here suggested that.

I had to Google a link for you to see some things you wanted.

https://passlibrary..com.ng/2017/07/the-impact-of-automated-trading-system.html?m=1

Nice one sir

RabbiDoracle:


I try and answer some based on my little knowledge of stocks

thanks bro.

Those dealing in illiquid stocks might be more affected by the new pricing rule, especially those under N5.
Those familiar with the price movement of ETI, Seplat etc will understand this (there are no modifications for the class of stocks to which ETI and Seplat belong though).
Millions can be traded in a day but with trades less than 100,000 units.

Momoney54:


I don’t agree oh. Please continue to share the investment houses reccomendations. We should always do our own due diligence, however it starts with getting as much information as we can. The Vetiva recommendations have been quite helpful!

Over helpful sef

Chai..... Chai.....
See how them naked our Bishop for market square. Since the days of SMN, I have discovered that the worst time to misfire is during the bear season. Investors no go hesitate to tear down anybody that misfires with big bag grammar and vocabularies.
Sir ihedi, I understand your comment and concern for Madam Yariya(and safety of her family), but the way you structure it made people read meanings into it and felt you we're all out to bully Madam.

RabbiDoracle:


For number 3.

A dealing member in NSE or a smart broker will tell you that.

X-GEN trading platform

R0LL0N:

These are my questions:
1. What are the components combined together to determine stock price
2.What are the factors that influence the changes in the price of stock or factors causing fluctuation in stick market
3.what is the name of the automated trading system used in the Nigeria stock exchange
4.Why is investment on stock not guaranteed
5.what are the malpractices found in stock market and how do they affect the stock price
6. What are the computational models that have been used to determine stock price in Nigeria stock exchange and which of the model is the latest.
7.what are the stock indicators in Nigeria stock exchange
All questions asked here are also related to real experience and observations seen so far in the Nigeria stock market. I appreciate all answers from technical, brokers and investors perspective. God bless you all. Am patiently waiting..... Thanks

4:
Your investment is not guaranteed because of the risk of loss of your gain and capital.

Why can you lose money? Very simple. Just ask some Oando shareholders.

Imagine I bought Oando shares when it was selling for N200. I had N20m to invest. If I offset the brokers buy fees with spare money I have, then it shows that I will use the N20m to buy the shares of Oando.

After purchase, I will have 100,000 units.

If I held the shares from the time I bought it till now, I would have lost so much.

Reason is simple. Now Oando is around N6. This means that my portfolio value is just N600,000.

This shows that I lost N19.4m

So do you think your investment is guaranteed?

Now this is what guys do to ensure that their investments is guaranteed.

First
-buy low and sell high. Low is relative in meaning.a 50 kobo stock can be more expensive than a N10 stock. So you buy a good stock at a low price and then once it gets above your purchase price, Yiu sell off. Some people wait for 20% to 100% gain before they sell. Some even sit on 1000% gain before selling.

- time limit. Some people set timeframe for holding their shares. Some short term, medium term and some long term.

Short term could range from 3 days to 12 months. Some people will say that 6 months is even long term for them. So different tales for different folks.

Medium could be 1 year to 3 years.

Long term could be as long as you can hold. Some people get shares handed over to them by their parents.

- Do your Due Diligence. You see people write DD advised. It is not Directional Drilling ooo... It is Due Diligence. Checks everything you need to know about the company you want to buy. The price, read the financial reports, the management, attend AGMs, everything. If you do all these, you will know that you are not buying a briefcase Company.

RabbiDoracle:


4:
Your investment is not guaranteed because of the risk of loss of your gain and capital.

Why can you lose money? Very simple. Just ask some Oando shareholders.

Imagine I bought Oando shares when it was selling for N200. I had N20m to invest. If I offset the brokers buy fees with spare money I have, then it shows that I will use the N20m to buy the shares of Oando.

After purchase, I will have 100,000 units.

If I held the shares from the time I bought it till now, I would have lost so much.

Reason is simple. Now Oando is around N6. This means that my portfolio value is just N600,000.

This shows that I lost N19.4m

So do you think your investment is guaranteed?

Now this is what guys do to ensure that their investments is guaranteed.

First
-buy low and sell high. Low is relative in meaning.a 50 kobo stock can be more expensive than a N10 stock. So you buy a good stock at a low price and then once it gets above your purchase price, Yiu sell off. Some people wait for 20% to 100% gain before they sell. Some even sit on 1000% gain before selling.

- time limit. Some people set timeframe for holding their shares. Some short term, medium term and some long term.

Short term could range from 3 days to 12 months. Some people will say that 6 months is even long term for them. So different tales for different folks.

Medium could be 1 year to 3 years.

Long term could be as long as you can hold. Some people get shares handed over to them by their parents.

- Do your Due Diligence. You see people write DD advised. It is not Directional Drilling ooo... It is Due Diligence. Checks everything you need to know about the company you want to buy. The price, read the financial reports, the management, attend AGMs, everything. If you do all these, you will know that you are not buying a briefcase Company.

Hmm great point. Many thanks

RabbiDoracle:


2.
- corporate news which range from financial results, mismanagement, forensic audit, board infighting, events causing material damage.

Let me example them:
If financial results are bad, people who have seen the information will start to sell.this forces the price to fall. If the news is good, it forces prices to rise.

If there is mismanagement in the company, investors sell knowing fully well that it will affect the bottom line of the firm. Some may be scared of a takeover by the federal government. Examples were in 2009 when some banks were said to have mismanaged the affairs of the firms. CBN intervened and the rest is history.

Forensic audit: aggrieved shareholders will call for this exercise if they suspect anything in the books of the firm. Investors start to sell and ask questions later. Example Oando's case.

Event causing material damage: a fire could occur in a manufacturing firm and you know that this listed insurance company is the insurer of that firm. Once you hear that, investors start to sell because it will take big claims from that insurer and that will affect the returns you will get as a shareholder. Also the manufacturing firm will lose production and revenue depending on the size of the inferno. This too will affect shares prices.

- laws of the nation: policy flipflops could cause investors to be confused and they sell off. A good policy on the other hand will make investors come in droves. Example when the country started restricting USD sales due to low oil price, investors knew they could be trapped. They exited very fast. This gravely affected the market from 2014 till 2016. To forestall this, CBN introduced a window where investors can buy and sell their Forex easily. This restored the market back and that is the boom you see now in stock market.

- insecurity: Nigeria is highly dependent on oil for its survival. If anything happens in the ND, there are jitters anongst investors. Shutting oil installations will affect revenue of the country and this in turn will send a dangerous message to investor in the stock market and they take off.

-national events like elections could likely cause fluctuations in stock market. I don't need to explain this

Ati bebelo

ESE pupo. Am really blessed to night

R0LL0N:

These are my questions:
1. What are the components combined together to determine stock price
2.What are the factors that influence the changes in the price of stock or factors causing fluctuation in stick market
3.what is the name of the automated trading system used in the Nigeria stock exchange
4.Why is investment on stock not guaranteed
5.what are the malpractices found in stock market and how do they affect the stock price
6. What are the computational models that have been used to determine stock price in Nigeria stock exchange and which of the model is the latest.
7.what are the stock indicators in Nigeria stock exchange
All questions asked here are also related to real experience and observations seen so far in the Nigeria stock market. I appreciate all answers from technical, brokers and investors perspective. God bless you all. Am patiently waiting..... Thanks

5.

A malpractice is step away from the usual procedure.

I don't know what happens on the floor of the exchange ooo. But a company can engage in malpractices that will affect the stock prices.

Examples:

Mismanagement: CBN sacked some board members of a bank over giving insider loans. What happened next. Everyone rushed go the exit door. The stock price was around N4 then. In a short time, it became 50 kobo.

Falsification of figures: this happens abroad, some company directors will give a bloated figure for revenue, profit before tax, profit after tax. They will adjust depreciation from the usual to something that doesn't take much for maintenance of machinery and properties. Some will turn expenses into assets. The aim is to project the company as making so much money. Share prices rise. Once this is discovered and audit is called for, price tank.

Sometimes SEC sanctions the firm and this affects profitability.

- Tax related issues with the nation. Once you falsify these and it is discovered, the prices will fall.

All malpractices cause share prices to fall.

However, there is a group of investors called CONTRARIAN INVESTOR, they believe that these events will be short lived. So they buy the shares of these companies at lower prices and an equilibrium is achieved. If these malpractices are sorted out and maybe a new management is selected, then prices tend to pick up.

R0LL0N:
ESE pupo. Am really blessed to night

Try and research more on the point mentioned to get more insight.

RabbiDoracle:


Try and research more on the point mentioned to get more insight.

Thanks olukoni. I give u 3 gbosa. Please can i have your contact. I need to acknowledge you when writing my thesis.

R0LL0N:

Thanks olukoni. I give u 3 gbosa. Please can i have your contact. I need to acknowledge you when writing my thesis.

You never write you wan acknowledge

R0LL0N:

These are my questions:
1. What are the components combined together to determine stock price
2.What are the factors that influence the changes in the price of stock or factors causing fluctuation in stick market
3.what is the name of the automated trading system used in the Nigeria stock exchange
4.Why is investment on stock not guaranteed
5.what are the malpractices found in stock market and how do they affect the stock price
6. What are the computational models that have been used to determine stock price in Nigeria stock exchange and which of the model is the latest.
7.what are the stock indicators in Nigeria stock exchange
All questions asked here are also related to real experience and observations seen so far in the Nigeria stock market. I appreciate all answers from technical, brokers and investors perspective. God bless you all. Am patiently waiting..... Thanks

Is it models for determination of prices

I no sabi wetin NSE dey use ooo..

But to determine prices, there are lots of models you could use. I know of discounted dividend model, discounted cash flow model. The basic are from Net asset per share value, Net of Net method, dividend yield methods.

See the link to read about others.

https://en.m.wikipedia.org/wiki/Stock_valuation

Since your MSC is largely theoretical, if you carry the same theory come market, you go fall yakata.

Many companies use models for price computation but they still went under. They were using advanced formulas and complex computer models to determine prices of purchase

And that was why Warren Buffett said: beware of geeks bearing formulas.

Agbalowomeri:


You never write you wan acknowledge

he will go and dub and dub RabbiDoracle post # 32145.

R0LL0N:

These are my questions:
1. What are the components combined together to determine stock price
2.What are the factors that influence the changes in the price of stock or factors causing fluctuation in stick market
3.what is the name of the automated trading system used in the Nigeria stock exchange
4.Why is investment on stock not guaranteed
5.what are the malpractices found in stock market and how do they affect the stock price
6. What are the computational models that have been used to determine stock price in Nigeria stock exchange and which of the model is the latest.
7.what are the stock indicators in Nigeria stock exchange
All questions asked here are also related to real experience and observations seen so far in the Nigeria stock market. I appreciate all answers from technical, brokers and investors perspective. God bless you all. Am patiently waiting..... Thanks

7.

Stock indicators are many na.

Indicators are used to measure or gauge the performance of stock.

The first one which is used to gauge the general market trends is ASI index.

There are sub indices under this; NSE 30, banking index, insurance, consumer goods, etc.

You can research this if you go to NSE website.

Manonamission:


X-GEN trading platform

Thanks bro.

Manonamission:


X-GEN trading platform

Wow! Many thanks. Please are u a stock broker

RabbiDoracle:


7.

Stock indicators are many na.

Indicators are used to measure or gauge the performance of stock.

The first one which is used to gauge the general market trends is ASI index.

There are sub indices under this; NSE 30, banking index, insurance, consumer goods, etc.

You can research this if you go to NSE website.

Many thanks

Oracle your willingness to help is matchless. Please ,to help the forumites,

Can you break down how to calculate fair value using ideal methods.

This knowledge will go a long way in helping a lot of US.

You can do this at your time. Hope we have your consent?

Thanks

R0LL0N:

Thank bro. I understand the angle you are coming from. Though i have done most of my searches on google. Supervisor needed some of the answers based on broker and investor real experience at d NSE

The truth is that most of our supervisors are theorist. Dem no sabi the real thing. He just wants to use you and learn.

They hardly have industry experience and that is why they find way for you to get the info and come and teach them.

If say na Pa Emma dem tell this one, all of them will be sleeping when Pa Emma will be telling them how NSE ASI rose from 50 to 45,000, how he advised Lord Luggard to open a commodity exchange

sellydion:
Oracle your willingness to help is matchless. Please ,to help the forumites,

Can you break down how to calculate fair value using ideal methods.

This knowledge will go a long way in help a lot of US.

You can do this at your time. Hope we have your consent?

Thanks

Nothing like ideal method.

CP has been helping guys do that and he is correct.

I dey on my 5th Heineken bottle now. (Oga Veecovee, how far)

RabbiDoracle:


The truth is that most of our supervisors are theorist. Dem no sabi the real thing. He just wants to use you and learn.

They hardly have industry experience and that is why they find way for you to get the info and come and teach them.

If say na Pa Emma dem tell this one, all of them will be sleeping when Pa Emma will be telling them how NSE ASI rose from 50 to 45,000, how he advised Lord Luggard to open a commodity exchange

You teach them sef, dem no fit sabi. There is a wide gap between industry and academia especially in Nigeria

RabbiDoracle:


Nothing like ideal method.

CP has been helping guys do that and he is correct.

I dey on my 5th Heineken bottle now. (Oga Veecovee, how far)

Yes, thanks to CP. CP is not handing down the knowledge. I am a knowledge type.
Strongly believe I can do it by my self. There are various methods, that I am aware.
Practically some are good while some are theoretically okay. Especially in Nigeria context.
Hope you understand me.

RabbiDoracle:


Is it models for determination of prices

I no sabi wetin NSE dey use ooo..

But to determine prices, there are lots of models you could use. I know of discounted dividend model, discounted cash flow model. The basic are from Net asset per share value, Net of Net method, dividend yield methods.

See the link to read about others.

https://en.m.wikipedia.org/wiki/Stock_valuation

Since your MSC is largely theoretical, if you carry the same theory come market, you go fall yakata.

Many companies use models for price computation but they still went under. They were using advanced formulas and complex computer models to determine prices of purchase

And that was why Warren Buffett said: beware of geeks bearing formulas.

Nice one. @ Bolded i am sure you meant "value" and not price.

RabbiDoracle:


The truth is that most of our supervisors are theorist. Dem no sabi the real thing. He just wants to use you and learn.

They hardly have industry experience and that is why they find way for you to get the info and come and teach them.

If say na Pa Emma dem tell this one, all of them will be sleeping when Pa Emma will be telling them how NSE ASI rose from 50 to 45,000, how he advised Lord Luggard to open a commodity exchange

Lol uve said well. We got no choice than to do what they want

@ oracle.Do you see how you kept Ihedioramma your own brother?
@Ihedioramma.Have you seen what your mouth and vocabulary/writings brought you to?
Pls change your moniker and begin to use pidgin English or varnacular.

You are now not different from this man who collapsed on the pitch.Get up and pick courage again.such is life bro.

RabbiDoracle:


Is it models for determination of prices

I no sabi wetin NSE dey use ooo..

But to determine prices, there are lots of models you could use. I know of discounted dividend model, discounted cash flow model. The basic are from Net asset per share value, Net of Net method, dividend yield methods.

See the link to read about others.

https://en.m.wikipedia.org/wiki/Stock_valuation

Since your MSC is largely theoretical, if you carry the same theory come market, you go fall yakata.

Many companies use models for price computation but they still went under. They were using advanced formulas and complex computer models to determine prices of purchase

And that was why Warren Buffett said: beware of geeks bearing formulas.

Not that theoretical. These findings are needed for chapter one and two. It needed to be able to understand NSE strength and weakness and to come up with a program that can predict future performances

Agbalowomeri:


You teach them sef, dem no fit sabi. There is a wide gap between industry and academia especially in Nigeria

mendes911:


What kind of device are you using to reply/quote post on this forum. Can you kindly enable auto-correct if it's so difficult for you to use your common sense.

I will recommend the following primary school books for you.

You should have given him respect.
A man above 50 years is not suppose to be humiliated like this.
Didnt you see how one of the sons of Noah covered his unclothedness when he got drunk?

Agbalowomeri:


You never write you wan acknowledge

Lol. I need to report back to my supervisor where i get this information noni. Am gonna print our nairaland discussion out. So it is part of my report to him. Many thnks

RabbiDoracle:


Is it models for determination of prices

I no sabi wetin NSE dey use ooo..

But to determine prices, there are lots of models you could use. I know of discounted dividend model, discounted cash flow model. The basic are from Net asset per share value, Net of Net method, dividend yield methods.

See the link to read about others.

https://en.m.wikipedia.org/wiki/Stock_valuation

Since your MSC is largely theoretical, if you carry the same theory come market, you go fall yakata.

Many companies use models for price computation but they still went under. They were using advanced formulas and complex computer models to determine prices of purchase

And that was why Warren Buffett said: beware of geeks bearing formulas.

Though its more of computational models