Hello, would love to get tips on how to go about investing in bonds and shares. Thanks.

Hi, are you still after investment tips?

Finally, yes i would appreciate that.

I will advise you to go for GTB bank. It will do well in the long term. Also reinvest whatever dividend they pay you into it. The big money is in reinvestment of dividends. also invest in First Bank. Its seems well run and have loads of customers.

grandstar: I will advise you to go for GTB bank. It will do well in the long term. Also reinvest whatever dividend they pay you into it. The big money is in reinvestment of dividends. also invest in First Bank. Its seems well run and have loads of customers.

I think you should probably expatiate on bonds and shares, what the turnover is like, just more details before you make suggestions. can you do this please cuz I'm very interested. Thanks

wills03:

I think you should probably expatiate on bonds and shares, what the turnover is like, just more details before you make suggestions. can you do this please cuz I'm very interested. Thanks

I dont have the time to right. So sorry.

grandstar:

I dont have the time to right. So sorry.

well its Ok but the essence of this forum is to be able to contribute to someones knowledge so I think you could just squiz out time to do this. Imagine you were in my shoes 'that should be your motivation'. hoping to hear from you. Thanks.

wills03:

I think you should probably expatiate on bonds and shares, what the turnover is like, just more details before you make suggestions. can you do this please cuz I'm very interested. Thanks

Shares are proofs of ownership for a particular company and bond is an obligation by a company to pay back debt at a given rate after maturity to a legal entity who purchases the bond; so both are forms of investment. Shares are more volatile (in that the prices fluctuate usually based on demand and supply factors) than bonds but also bonds can pose a risk if care is not taken when making investment decisions.

There are different kinds of shareholders: ordinary shareholders who buy the common stock of the company and are entitled to profits as well as losses, have voting rights and participate in exercising these voting rights, etc; preference shareholders who are more or less creditors to the company, are paid specific profit value before the ordinary shareholders and are settled before the ordinary shareholders in the event of a wind-up. However, the company can make a provision for preference shares to be converted to ordinary shares.

There are two kinds of Markets in the Capital Market System: Primary Markets - provides markets for public offerings, right issues, private placements (usually not regulated); and Secondary Market - markets for listed companies on the Exchange.

A company's shares can be listed (quoted) in an Official Exchange Platform as with The Nigerian Stock Exchange or unquoted and still traded though via Over The Counter mechanism or better still not listed. The Nigerian Stock Exchange is an organized, well structured and efficient market place for trading shares of public companies. Companies intending to list their shares on the Exchange must pass through stringent rules and regulations and uphold certain codes of conducts.

Lastly there are stakeholders in the Nigerian Equity Market - Securities & Exchange Commission (Regulators), The Nigerian Stock Exchange (market place), Central Securities & Clearing Systems Plc (Depository/Clearing Agent), Registrars (maintain register of members of companies), Broker/Dealer (authorized/licensed agents for trades on The Exchange. The are the Stock Brokering firms), Issuing Houses (manage new issues and create market for company shares), Settlement Banks (provide fund settlement transactions for trades on The Exchange), CBN (regulates the banks) and investors (individual clients or institutional investors).

I hope this is basic.

On turnover or profit making, this is really complex. Buying shares of companies is just as investing in a business; there are risks - political, environmental, economic, social and even legal risks depending on the company in question and the industry/sector. So turnover depends on these factors as the company's performance over a given period, its competitive advantage over other companies in the same industry, etc.