How to Buy Shares of a Company in Nigeria

Posted by James on Saturday January 17, 2015 at 10:27:56:

In recent times, hogging the limelight has been the stock market, with every one wanting to make money. It is no longer being referred to as a preserve of just a few groups of people, but is now open to all who are interested and eligible. Companies come out with their offerings and make it available to the public and get them listed on the stock exchange for everyone who would want to join the party. In Nigeria, there are a couple of laid down criteria that a company needs to fulfill for them to be able to trade their shares on the stock market.

When it comes to buying shares in Nigeria, this can be quite confusing especially for beginners. When anyone is interested in buying shares, rather than going to the stock exchange yourself, there are people referred to as stock brokers registered with a broking firm. These are the people that you can buy your share through. Whenever someone is interested in buying any shares, they will need to locate a broking firm that is decent and then open an account with them. Once you are registered with these firms, you can instruct them on what share to buy on your behalf.

Statements of your stocks are periodically to you so that you can know where you stand. Have it in mind that there are fees you pay for thee services. These fees also include VAT (since this is considered a transaction). You will also have to identify companies and their various share prices. A share price refers to the current price of the stock on the Nigerian stock market. Knowing whether a share is worth the buy can be very technical and so this is where your stock brokers come in. They are the ones that will advice you on which to buy (may be because they believe that the share price value has a chance of appreciate in the future) and which not to at the moment.

In the end you get to decide whether or not to go with their advice or not - usually after considering for yourself the history, trend and market information of the company and its shares. Share are considered the riskiest investment anyone can make, this is why before making the decision to invest, you need to understand what it entails. Understand the possible risk. This is to say that the price of share can plummet, but they can also get to rocket - there are no guarantees to this. This means that you have to be ready for whatever comes your way, whether it is a win or lose.

Shares can now be bought through several means like over the phone, online and even using a mobile app. Ensure that you do your due diligence. Doing a research before going for the shares is very important and it pays a lot - even though you have professionals doing it. Get to know about their performance in the past, present and project chances of future success.

To buy shares in Nigeria, just visit a registered stockbroker, fill an application form indicating the ones you want to buy, the purchase price and then make a deposit by cheque or bank transfer. The broker will then buy it for you and this will also reflect in your CSCS account. You can always access your CSCS account independently online or by visiting the CSCS office and requesting for your stock statement. Once the shares are bought for you as an investor, your names will then be