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Nairaland Forum / Nairaland / General / Investment / Why Young People Should Invest In Shares (23845 Views)
Why Is It Hard For Most Young People To Save Money?? / How Should Young People Invest Their Extra Cash? / All You Need To Know About Shares And Investing In Shares (2) (3) (4)
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Why Young People Should Invest In Shares by emmanuelewumi(m): 10:05am On Nov 19, 2013 |
A share is a unit of ownership in a company. In other words, when you buy shares of a company you become part owner of the company and have the rights to share from the fortune of company and contribute to major decisions at the Annual General Meeting of the company. What are the benefits of investment in shares? The benefits are numerous, however I will mention just a few: 1. COLLATERAL: It serves as collateral, whenever we need loan from the bank. It is easier to use as collateral than using buildings. No need of certificate of occupancy, no need of evaluation by estate valuers. By looking at your shares certificates or CSCS statement, the bank manager knows the value of the shares and you also know. Shares are the most preferred collateral security because of its liquidity. 2. DIVIDENDS: As a part owner of a company, you are entitled to dividends. Dividend is a cash reward made by a company to its owners out of the profit made at the end of a financial year. The amount of dividend received is determined by the volume of your shareholding.My mother used the dividend she received between 2000 and 2003 to build 2 units of 3 bedroom flats in Lagos. 3. BONUS SHARE: This is similar to dividend but it does not involve cash payment. When a company gives bonus shares, it means every shareholder is entitled to additional free shares. N3500 used in buying 1000 units of First Bank shares in 1993 have grown to over 54,000 units valued at almost N900000 in 2013 due to bonus shares and growth of the company. 4. CAPITAL APPRECIATION: Shares of companies may appreciate due to the forces of demand and supply, growth of the company, management competence or growth in the economy. http://www.jarushub.com/14-benefits-of-shareholding/ 8 Likes 1 Share |
Re: Why Young People Should Invest In Shares by emmanuelewumi(m): 10:31am On Nov 19, 2013 |
emmanuel ewumi: http://www.jarushub.com/14-benefits-of-shareholding/ 4. CAPITAL APPRECIATION: Shares of companies may appreciate due to the forces of demand and supply, growth of the company, management competence or growth in the economy. 5. LIQUIDITY: Shares of blue chip companies are very liquid; it can be easily converted to cash. One million units of Nestle shares valued at over N1 billion can be converted to cash within a week, whereas a property valued at N100 million can be in the market for a year or more. |
Re: Why Young People Should Invest In Shares by ULSHERLAN(m): 10:53am On Nov 19, 2013 |
Shares.......I don't wanna go down there...I will rather invest my money on other things than go into shares.....to me it doesn't work for me |
Re: Why Young People Should Invest In Shares by emmanuelewumi(m): 10:55am On Nov 19, 2013 |
ULSHERLAN: Shares.......I don't wanna go down there...I will rather invest my money on other things than go into shares.....to me it doesn't work for me It is better you invest in what you understand. I guess you do not really understand how the stock-market works. |
Re: Why Young People Should Invest In Shares by ULSHERLAN(m): 11:01am On Nov 19, 2013 |
Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressed me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I know 2 Likes |
Re: Why Young People Should Invest In Shares by Mascotlawman: 11:04am On Nov 19, 2013 |
op, thanks for the info, the little I understand abt the stock market has made me to at least invest the much I could at the moment, hoping that the future will be better. Front page |
Re: Why Young People Should Invest In Shares by Mascotlawman: 12:33pm On Nov 19, 2013 |
ULSHERLAN: Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressing me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I knowIt depends on the company and ur aim. Are u there for short term or long term? u dnt invest money that u will need urgently in shares. My advice is, make use of what u can set aside. |
Re: Why Young People Should Invest In Shares by emmanuelewumi(m): 12:52pm On Nov 19, 2013 |
ULSHERLAN: Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressing me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I know You need to invest in your financial education. Lasting wealth is made on a slow and steady basis. I guess you thought the stock-market is a place to make fast and easy money. 4 Likes |
Re: Why Young People Should Invest In Shares by ULSHERLAN(m): 2:40pm On Nov 19, 2013 |
Mascot lawman:Hmm you just said some few good points. Well there are companies am really enjoying in the shares thing with bonuses and all. Funny enough its bn a while now if I can still remember when |
Re: Why Young People Should Invest In Shares by emmanuelewumi(m): 3:26pm On Nov 19, 2013 |
ULSHERLAN: Can you tell us some of these companies. |
Re: Why Young People Should Invest In Shares by jamace(m): 4:14pm On Nov 19, 2013 |
That's right. I'm tutoring my kids already on stocks/shares. 1 Like |
Re: Why Young People Should Invest In Shares by packman: 5:08pm On Nov 19, 2013 |
11 1 Like |
Re: Why Young People Should Invest In Shares by FKBZ: 5:10pm On Nov 19, 2013 |
IT SEEMS LIKE A HUGE RISK...WOULD LOVE TO BUT MY DAD LOOSED ALL HIS MONEY ON IT AND IT WAS A VERY HARD PERIOD DEN. PLS LIST COMPANIES IN WHICH MY MONEY WOULD BE SECURED AT THE LONG RUN. |
Re: Why Young People Should Invest In Shares by adtiezy1(m): 5:11pm On Nov 19, 2013 |
ok |
Re: Why Young People Should Invest In Shares by greall1: 5:11pm On Nov 19, 2013 |
I don't like to invest on shares |
Re: Why Young People Should Invest In Shares by bunchyproject(m): 5:13pm On Nov 19, 2013 |
Cool! Young people should also invest in real estate:https://www.nairaland.com/bunchyproject 2 Likes |
Re: Why Young People Should Invest In Shares by agrovick(m): 5:13pm On Nov 19, 2013 |
Financial indiscipline is one area I need to work on, I just find it difficult to save from my feeding allowance. Lord have mercy |
Re: Why Young People Should Invest In Shares by mikkyokilo: 5:14pm On Nov 19, 2013 |
Vista Rulz........ |
Re: Why Young People Should Invest In Shares by Nobody: 5:16pm On Nov 19, 2013 |
. |
Re: Why Young People Should Invest In Shares by misterjosh(m): 5:17pm On Nov 19, 2013 |
I want to buy shares oo, pls ao much is d least amt one shuld expect as dividend for a share of lets say #10,000 in a healthy bank. Pls o am still a student, will d dividen b able to pay my monthly BIS subscription? 1 Like |
Re: Why Young People Should Invest In Shares by misterjosh(m): 5:18pm On Nov 19, 2013 |
bunchyproject: Cool! Young people should also invest in real estate:http:///4HB6LYReal estate requires quite a lot of capital oo. |
Re: Why Young People Should Invest In Shares by bunchyproject(m): 5:22pm On Nov 19, 2013 |
mister josh: Real estate requires quite a lot of capital oo.. Hmmmmmmm! |
Re: Why Young People Should Invest In Shares by kambili999(f): 5:23pm On Nov 19, 2013 |
im nt into d business lane bt i find this captivating. Will love to knw more abt this. OP this is kul, do more to educate interested pips lyk me on this. |
Re: Why Young People Should Invest In Shares by kwaraguy(m): 5:24pm On Nov 19, 2013 |
OK |
Re: Why Young People Should Invest In Shares by occam(m): 5:27pm On Nov 19, 2013 |
mister josh: Real estate requires quite a lot of capital oo. True but you can form a syndicate with 5 - 8 partners to invest in real estate. Only thing is not sure if this can work in Naija. |
Re: Why Young People Should Invest In Shares by olumuyoy: 5:28pm On Nov 19, 2013 |
Well I don't fink it's wise to invest in shares esp wen u consider d dwindling economic status quo we plunge ourselves in...i rem few yrs baq ow many pple died n had stroke wen d capital mrkt plummeted....d best investment is in oneself... |
Re: Why Young People Should Invest In Shares by Nobody: 5:29pm On Nov 19, 2013 |
What about those that know nothing about the stock market or how it works 1 Like |
Re: Why Young People Should Invest In Shares by uceee(m): 5:29pm On Nov 19, 2013 |
mister josh: I want to buy shares oo, pls ao much is d least amt one shuld expect as dividend for a share of lets say #10,000 in a healthy bank. Pls o am still a student, will d dividen b able to pay my monthly BIS subscription?Sharp guy. Experts in the house, answer please. 1 Like |
Re: Why Young People Should Invest In Shares by everyday: 5:30pm On Nov 19, 2013 |
I thought the capital market in Nigeria is no longer a goldmine |
Re: Why Young People Should Invest In Shares by akintun: 5:31pm On Nov 19, 2013 |
D reasons given are so deceitful, and they were not critically analyzed. |
Re: Why Young People Should Invest In Shares by Youngzedd(m): 5:32pm On Nov 19, 2013 |
Subscribing.... |
Re: Why Young People Should Invest In Shares by Otunbab: 5:34pm On Nov 19, 2013 |
Look, shares this days don't do anybody any good jare... Last I was in Nigeria , I know how much I take invest now I looked at it, believing at all at all interest go don dey.. Oh Boi, if I could cry, I would have at first sight of what I saw.. It was a complete waste of money.. The only way am going to invest in anything again is if i am guaranteed that I would at least get my exact money back if any thing bad happens. 7 Likes |
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