₦airaland Forum

when an entity is owned by x number of people, then that entity owes those x number of people. this differs from when you own a piece of property, a company is seen under the law the same way a human being is seen.

Asset-liability=capital

the 'capital' part of the equation is what financing is about. so whatever a company does to ensure that capital is a financing function

@pumping & wanaj0
like i insinuated, share buyback is not provided for at all in the rule books when it was written probably because it is old and no longer robust not that there is a clause that says 'share buyback shall be illegal in the nigerian financial market'

wanaj0:
And how do the company owe their owners? How does equity turn to debt? Teach me more about corporate finance.

I work in a firm that buys back its share every year. It is part of the necessary disclosures in the finnacial statement and it has nothing to do with financing.

Will try and search the SEC report where the Lagos Zonal officer said that share buy back is not in their books.

this is excellent. i'm happy the topic is something u're familiar with.

1. a company is a legal entity OWNED by x number of people (can you see where owing comes into the play)

but a company cannot own itself 100% so there must be some owners. if that company makes so much and pays off some of the owners, the value to the remaining owners increase (not anybody's fault, just the way the system). thats what shareholders value or wealth creation is about.

that way, owners or potential owners will be happy to put in more money anytime a company goes to ask for it, and that is what i meant by financing, a pro-active way of ensuring future sources of funding

@ pumping & wanaj0
readin the article right now

@wanaj0

can you please quote me the sec rules in question?

you need an understanding of corporate finance to know how share buyback plays a role in financing a company. an analogy you can run with is; when you owe 10 people and you pay off 2 of the 10, you have indirectly (the KEYWORD) financed yourself

@roughcut

there's nothing like share buy backk with the aim of manipulating price. the very concept of share buy back does not allow for that. if a company buys back it shares, those shares are cancelled. once that happens, whatever effect it has on the shareprice is totally legal and allowed under the laws of any country

if a company buys it owns shares to keep somewhere using any brokerage or investment firm in which the company has interest, that is not share buyback and that is illegal. i.e company A owns significant interest in company B and company B now buys huge chunk of company A shares, that is manipulation and it is illegal

if it is found out (it is easy to find it out), the board of Company A goes to Jail

@wanajo

i dont agree with you that share buy back is not allowed in nigeria. where did you get that from?

share buy back is a standard financing practise all over the world. the fact that it is not yet being used regularly by companies in nigeria does not mean it is not allowed or illegal, it's almost like saying having diffrent classes of shares in a company is  illegal

dont forget that the capital market in nigeria is still developing, GDR was not existing in nigeria until GTB blazed the trail. we dont trade shares futures and options etc yet in nigeria, so if somebody does it, will you say it is not allowed?

@poster

right or wrong is relative and it depends most times on the person looking at it

since the case was about ur lady friend and she found what you did offensive, then you need to apologise to her and let her understand that what you did was without malicious intent and you only wanted to help by seeking varied and diverse opinion from third parties.

it is amazing how people can dispassionately see solutions to a problem when they are not directly involved and that is the benefit of putting something like that up in a forum like this.

explain all that to her and really make her realise you would not have done it if you knew she was going to be annoyed

your company has probably been comatose since u left so, that one is not an issue

if you have landed property, they are still yours. anytime you get a visa to visit nigeria, i'm sure the properties will be there waiting for you.

you are free to dispose of them if you choose or continue keeping them

@sweet aura et al

what the person at your brokers' said about wema share buy back back-firing is no longer correct in modern day finance.

if a company buys back it's own shares, it is a great sign for the share holders in that the outstanding no of shares will reduce thus EPS will increase since those shares are cancelled when they are bought.

a company cannot buy it's own shares and hold in a stockbroking account to sell later, that is an illegal thing

another thing they can do is to give those stocks to their executive as part of their remuneration (stock option) and/or at heavily discounted cost to those executive or staff.

in either case, the cash spent is charged as an expense in the business year, the effect is marginal on the end yr return to shareholders, the bank's happy, staff are happy, shareholders like me are happy

what i'm trying to say is that any strategy to maintain shareholder value in a good company like wema is a sweet song to my ears. i'm impressed they thought of that strategy and i'm more convinced this mgt will do a good job

tenor600:
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These viruses are also responsible for High call rate tarriffs and often make calls unaccessible. But the society would ignorantly put the blames on service providers for high tarriff call rates,it because of the viruses in their phones.

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The Anti-virus Phone software is looks like a Recharge Card. It has Pin Codes at the covered area located at the back of the Anti-virus card. The covered area is scratched off to reveal the covered Pincodes.

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Key Note that (Space) are not required in step 2 above.

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Liar!!!

nkc:
please i would like to ask one question, to d gurus in d house,
someone that bot into first bank shares at 33naira, and now does not want it again and wants to get his money back at d same 33 naira, is it possible and how does one go about it , if it were possible. thanks

purchase of POs is a legally binding agreement and a firm commitment on your part and the way to get out is for you to verify your share cert and issue a sell order or a transfer order (if you do it directly at the registrar's office) to anybody who is interested in taking ownership of the shares

otokx:
When will the TS on NAHCO be lifted?

the NAHCO TS has been lifted since thursday last week or there about

price today is N23

Guap Banga:
What we have in Nigeria are debit cards! It often irritates the pants off me when people or the banks call them "credit cards". Your have to have money in your blimping account before you can use them! I don't even know if there's a crediting rating system in Nigeria like equifax them. There's really no advantage in my opinion, apart from the fact that they look fine and can use them to pose or make your wallet look fine. Many of them get declined abroad, heck even in Ghana and you have to watch the conversion rates when using them as well.

Zenith bank and Ecobank offer 'real' credit with their card.

in the case of Zenith, the most popular card most people can have an easy access to is a debit card but if you have been running a current account with them or u have your salary acct domiciled with them, they will give you a credit card and you pay back a mandatory minimum regularly and you can pay the rest as you wish just that you will incur interest expense

ecobank's naira credit card is also real and you do not have to have been operating an account with them for 6 months but they encourage you to have an account with them. i know they have a list of companies who they give those credit cards to easily because they know the staff have the means to pay back

what most other banks offer is called a SECURED credit card and believe me, it is not peculiar to nigeria. you find such cards even in the US but they are issued to people with poor credit ratings or no credit history such that over a period of time, if you can show that you are a trustworthy customer who respect obligations and agreements, you will be gradually migrated to unsecured cards

fill the form, 2 passport photographs, utility bill not more than 6 months old, identification i.e. driver's license or international passport etc

4christ:
MAYDAY!
I bought Zenith shares about 6 years ago and i only got a divident letter from them once after they sent my certificate. i met with the stock broker times without number and yet no change.
please what can i do

zenith had their IPO in 2004, aare u sure you bought zenith shares 6yrs ago?

guys,

rather than start another thread, i think you guys shld move this discussion to the 'stockmarket tips that can make you rich in 2007'or one of the other threads in the business section of this site

that will save contributors the effort of repeating all over again, most of the tips you want that they have already contributed on other threads

cheers

mee25:
NAHCO is off the hook today. The rally will begin

ar u sure it will rally? dont forget the price was dropping like a stone in water  :obefore it was suspended for the IPO

i hope it does rally sha cause i have exposures there

in the case of NSE, like a market for stocks that have not met the listing requirements for listing in the main NSE but still want to be able to access the capital market for funds and shares trading

sort of premiership; division 1 etc in football

kanugab:
Please somebody in the house should help. Who are the registra of FCMB and their address. Need it urgently.

check the prospectus

something like that could happen if there's any disparity whatsoever between: the account name you use with CSCS and the name on the Access bank share certificate you submitted for verification

what they do is to automatically open another account using the name on the share certficate. so ask your broker to find out if that was the case

Guys,

i think we shld generally ignore nigeria1's posts, the guy is high on sumtin you all dont want to smoke. his contributions distracts from the train of thought and arguments that wanajo, egoldman et al are putting out

if the admin guy reads this, he shld pls knock off nigeria1's post so that members of the house can follow the logical flow of the different arguments without the dumb dustractions that nigeria1 has turned himself into

transcorp is a company we are all passionate about and most of us; apart from being investors in the company, will like to see the company do well because of the business model & concept and the justice a company like that would do that nigeria's image on the world stage

@ALL

i think you have all made good contributions and like poske is nudging, we should take a second look at this investment window. it is not so popular with individuals in nigeria but i do know a lot of dicount houses deal on it and are still in business!!!

i will not go so far as poske to say it is a cash machine but i dont also agree wit wanajo that it gives u the lowest returns, it shld do beta than savings, term depo and govt bonds on an annualised basis

if any member of the house can research the modalities of getting into this investment vehicle in nigeria, (i nominate poske since he is enthusiastic about it) i.e. minimum iinvestment, which firms (access bank?) offer individuals the opportunity to tap in etc and share with the house, it might not be a bad idea to try it out for a few yrs

cheers y'all

honsule:
@chuchwhite. i sent u both d internet/wap settings long time ago.is it that,celtel deactivated your line or u misplaced it?

Hi honsule,

what is your email addy? mine's walecious@gmail.com

pls, can i get the celtel wap, gprs,mms (all the works) settings etc that you have? from the thread i understand some settings dont work for some people but u mentioned that the one u use still works!

i am based in warri but i come to lag often so even if there's no coverage when i'm in warri i will like to be able to use it in lag

thanx in advance

IykeD:
People, has anyone received his/her Zenith Bank Dividend Warrants.First bank has paid but i am yet to receive my zentih, Let's know if you have please

if you have more than 50,000 units, u will need to visit their offcie to hand pick it or call them 012708930 to confirm an address they will send it to, they usually prefer a nearby zenith bank branch to you where u can collect it in person

if you have less than that, you'll have to wait for it from NIPOST

baba .y.:
@ gurus

Is there anyone who can clearly distinguish for me the following capital market operators- Broker/Dealer, Sub-broker and jobber. Thanks

Broker/dealer - synonyms (they mean the same thing)

sub-broker is simply like an agent to a broker

jobbers - the old name that brokers used to be called but now used mainly for the likes of sub-brokers

madeonline:
Oceanic has not started distributing certificates but the should start any moment from now. Insider source reports that they have paid the issuing houses the cost of printing and distributing the certs. already.

i think oceanic registrar is leading the way into e-certs and e-bonuses. i suspect they will save themselves a lot of money by crediting the CSCS account of subscribers who have a CSCS number and provided the info on the form. so you might not receive a cert if you have provided ur CSCS acct number, you will only get a letter informing you that your CSCS acct has been credited wit the shares alloted to you

i got my last oceanic 1-for-4 bonus credited directly to my CSCS acct by oceanic registrar

you can call/visit IBTC Asset Managers Limited at the IBTC-Chartered Bank building on walter carrington

10 million shld open a stockbroking account for you. but if you want them to manage your portfolio exclusively, you need 50 million

i dont believe in impossibilities, so talk to them first. you guys might be able to work out a mutually beneficial agreement based on that 10 mill

ceceters:
Hello all,
Please i need a good stockbroking firm recommended for me. I want to start investing in shares(especially trading on the floor). I reside in PH and want to start with Between N50K - N100k.

Thanks.

try lead capital at these addys

E-mail: customerservice@leadcapitalng.com
Website: www.leadcapitalng.com

there is a long list of requirements that you need to meet, you can get the full details from the mobile operators.

just visit the head office and go to customer service desk, they shld be able to direct you to someone who can answer your questions

LondonCool,
take it easy on getwealthy. you need to appreciate that some people invest emotionally as opposed to people like you who do it scientifically

not yet.

there is a proposal and hopefully, actions to make it happen such that when you buy public offers or companies give bonus shares, they credit it directly to shareholders CSCS account. the implication of that is that anybody who buys shares in a company gets an automatic CSCS account if he does not already have one

that will remove the necessity for share certificates but as of today 15th october, it has not been implemented

fizofly:
, i just saw one of Nigeria's biggest heros in person of Ambassedor John Fasanu (one of naija and the world's most talented footballer) talk about his life, business and all that, to cut the long story short he said he will advice people to invest in "brick and water" (meaning properties) because the prices or wort will NEVER EVER deminish  unlike shares which is ,
WHAT ABOUT YOU? WHICH IS BETTER PROPERTY OR SHARE?, Lets share ideas

first of all, where did u get that idea that John Fashanu is one of naija and the world's most talented players i agree he had a decent career at club level but he was neva THE STAR even at that, he was just one of the many stars in the league. besides,he neva achieved anything worthy of note at international level.dont allow his good looks cloud your objective judgement of what he used to be

secondly, it is no longer true that prices of landed properties neva depreciate , property prices are subject to the laws of demand and supply just like stocks and shares, examples abound in the world. the most recent being what is happening right now in the mortgage industry in the US.

they are quite secure for people who are scared and looking for immediate security and the long term returns are comparable to what you get in shares not better!!!

my advise, if you are moved towards real estate, do it because you believe in it not because a former football player says it is working for him and as someone pointed out to you, REI is capital intensive, so you might want to build up your capital base by investing in shares and later go into real estate investing