Investing: How to buy and sell Shares on the Nigerian Stock market

Posted by Felix Okoli on Wednesday March 7, 2012 16:30:14:

The stock market is a market just like any other market you know except that in this case, stocks of quoted companies are what are bought and sold on a daily basis.

Things you will need
In other to be able to buy or sell stocks/shares on the Nigerian stock market, you would need the following things:

- An investor's account
- Stock brokerage firm
- Cash or stock

An investor's account is an account that is unique and tied to your name as an investor. It is normally opened for you along with a CSCS account with which your stock would be moved. It is opened for you by the stock brokerage firm or broker whom you have assigned to act on your behalf. All transactions done on your behalf would then be recorded against that investor account

You would also need cash or funds if you intend to buy or stocks/shares of the said public company if you want to sell.

Fees
The only fees you have to pay in order to buy or sell shares via your stockbroker is their commission and this is normally deducted from your account if you are selling or added to your charges if you are buying. It is supposed to be at a min flat rate of about 4% of the transaction worth. So, assuming your transactions were worth N100,000, you would have to pay about N4000 as a commission to your stock broker and that's how they make their money. No other fees should be charged except if you are requesting other special services from them.

How to buy shares
You take a look at the market prices on newspapers, NSE website or an extract at your stockbroker's office and decide on the company you want to buy from
- You go along with cash or cheque to pay into your account at your stockbroker's office
- You fill an application form together with your buying conditions such as buy or market price, quantity and so on
- You sign the form
- You submit form together with payment
- Expect that a purchase of the said stocks would be made within 72 hrs
- Contact your stockbroker to see if the transaction has been made
- Check your CSCS account online or get a paper statement from CSCS independently to confirm that the purchase has been made
- Now you are a shareholder in the said company and your name should be entered in the books before the next financial year end of the company

How to sell shares
- You go to the stockbroker's office along with your paper certificate if not yet dematerialized or CSCS account details of the said stock if already with CSCS
- You fill the sales application form of your stockbroker including things like your selling price, quantity and usual signature
- Shares should be sold within a few days and money should be paid into your bank account or a cheque made on your behalf
- Contact your stockbroker by phone or visit to confirm or also check your CSCS online account to see if sold
- Get payment in form of cheque or bank deposit from your broker.

Tips
When selling shares, make sure you use the same signature you used in buying it else they could delay it as a result of irregular signature and then request you get a banker's confirmation before proceeding with your order
Try to deal with reliable brokers and if you are not satisfied with one, you can always move to another. Just use your cscs account and investor's number
A lot of people make millions just buying and selling shares in Nigeria, you just need to know the best time to enter and exit.

Comments:

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by ANTHONY UDOH ATAT. on Saturday March 10, 2012 at 20:26:42:

Pls. i m like to join this business.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by abdullahi bashiru on Monday March 12, 2012 at 8:9:15:

pls i wuld like 2 start investing,how do i go abt dat.pls send me details via my email babdullhi@gmail.com,tankx

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by MR CHARLES OMENUKO on Monday April 2, 2012 at 13:3:47:

Pls i want to join this business.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by mr i:ksen on Friday April 13, 2012 at 17:39:23:

plz,i want to buy share buh i dnt knw hw to 2 about it...

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by ubenyi emmanuel on Friday April 20, 2012 at 10:9:28:

pls i want to go in to the stock market, kindly send me details at eubenyi@yahoo.com

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by E. C Mpi on Sunday April 29, 2012 at 7:27:53:

pls, i've always been interested in the stock exchange market but i always think the modus operandi is way too incommodious. How do i invest devoid of falling into the subtertuge of fraudulent personas? My email is eltonchillyblings@yahoo.com. I'll appreciate your help and reply. Thanks.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Sunday April 29, 2012 at 7:27:53:

Well, try to deal with only reputable stockbrokerage firms and not just any one. Also when making payments, it is better to pay with cheque or bank deposit rather than cash

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Andem Bassey on Tuesday May 1, 2012 at 14:23:4:

trading stock its a good,investment.I like it but i need fund to start with.am already awre of de differend fronter of shares in de market & there classes.Truely its intresting.help out.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Oluwafemi martina bose on Wednesday May 2, 2012 at 13:13:55:

Pls i want to sell my shares, i bought the shares from zenith bank in year 2008, but i don't know what to do

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by ITUNU OJAOKOMO on Wednesday May 9, 2012 at 14:58:52:

I WANT TO BUY SHARE. I DONT NO HOW IT WORK, OR HOW I GET TO RECEIVE INTREST

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Wednesday May 9, 2012 at 14:58:52:

If you want to buy shares, decide on which share you want to buy and apply through a registered stockbroker. After the shares have been bought, you can get a stock statement as proof from the CSCS office by applying. If the company does well in any particular year and declares dividend you will be paid some money. You can also monitor your shares by reading stock news on newspapers and on the website of the NSE or CSCS. You may also get an online access to your CSCS account and you will be able to know how your shares are faring

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by charles on Tuesday May 29, 2012 at 11:57:35:

pls..whats the minimum amount required to purchase shares from the NSE via stock brokerage firm,s..because i heard that there are now minimum purchase amounts.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Tuesday May 29, 2012 at 11:57:35:

I think N10,000 will do. But different stockbrokers may raise their minimum requirement

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Nkemakolam Marcellus on Tuesday June 19, 2012 at 11:58:52:

I bought shares from Zenith Bank, Oando and Union Bank between 2004 & 2005. I got bonuses & dividends last in 2006, sequel to change of address. Checks at former address in Anambra State has been fruitless. Pls help.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Tuesday June 19, 2012 at 11:58:52:

What you simply need to do is a change of address at your Company registrar and also tell them to add up your accumulated dividends that you've not received or cashed yet. They can cancel those old cheques and forward you new payments to your new address.

You would need to go to your company's registrar address in your current location and do the change of address application.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Nkemakolam Marcellus on Tuesday June 19, 2012 at 12:48:12:

Thanks for your prompt & delightful reply. Pls, where can I locate the Registrar for Zenith Bank, Oando, & Union Bank in the South East. As Iam now in Imo State

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Tuesday June 19, 2012 at 12:48:12:

Zenith bank registrars http://www.zenithregistrars.com/contactus.aspx
Union bank registrars http://www.unionregistrarsng.com/contact-uss.html
Oando registrars www.firstregistrarsnigeria.com

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Eberechi asabe on Saturday August 18, 2012 at 13:59:26:

How can i buy shares am intrested

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix on Saturday August 18, 2012 at 13:59:26:

Visit a securities firm

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by afolayan bolaji emmanuel on Wednesday August 29, 2012 at 16:23:12:

i want to buy shares i need form to fill know

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by emma on Tuesday September 4, 2012 at 19:10:39:

on my personal account form(under the character reference category), I was told to fill in my REFEREE'S details. Who is a referee?? How can I get one?

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Tuesday October 30, 2012 at 8:18:13:

A referee is simply someone that can vouch for you. It may be a public figure, a friend or another significant figure that can stand on your behalf.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Pharm Agu on Wednesday April 16, 2014 at 11:38:10:

pls any info on first bank and fidelity bank 2013 financial year end result. Any dividend or bonus.date for closure of register. Does first bank have stock broking firm, their contact address.Thanks

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Felix Okoli on Wednesday April 16, 2014 at 11:38:10:

Yes First bank has First Registrars and you'd see their office at Abebe Village Iganmu

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Dr. Yomi on Saturday June 14, 2014 at 20:14:3:

Pls a the regristras the stockbrokers?

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Felix Okoli on Saturday June 14, 2014 at 20:14:3:

No. The registrars are employed by the company while the brokers are independent contractors. The brokers act on your behalf when you want to buy or sell shares while the registrars just keep records of shareholders.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by DOMINIC, CHARLES on Friday June 27, 2014 at 15:59:12:

Pls Sir Felix, i would like to buy shares but i don't know a reliable company to buy my shares from and also a reliable Stock Broker.sir, I believe you are sound enough to choose for me and my friends a reliable Stock Broker and a company to buy the shares from. here is my contacts charles38840@gmail.com, 08063266910.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Felix Okoli on Friday June 27, 2014 at 15:59:12:

There are many reputable brokers you can meet with. You can try City Securities LTD at 386 Herbert Macaulay way, Yaba Lagos

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by DOMINIC, CHARLES on Thursday July 3, 2014 at 22:59:41:

But Am in Calabar, how do i go about it? are Brokers not in Calabar? can you refer me to one by giving me his or her mobile contact. am interested in buying shares with GTB or IBTC is that cool by you?

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Posted by Felix Okoli on Thursday July 3, 2014 at 22:59:41:

You can get a list of stockbrokers in Calabar here:http://www.vconnect.com/cross_river-calabar_municipal/list-of-stock-brokers_c260

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Mare Toby on Tuesday September 30, 2014 at 24:37:41:

I would like to be a par-taker but, how can i start with a little amount

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Ejike Ezekiel on Wednesday January 14, 2015 at 6:55:33:

I will be glad if update can be sent to me via my email always on a good broker and a reliable company to trade with.

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by Felix Okoli on Wednesday January 14, 2015 at 6:55:33:

BGL and CSL brokers are good

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by obasi emmanuel on Monday March 30, 2015 at 22:45:13:

where can i find a broker here in aba abia state a good one

Re: Investing: How to buy and sell Shares on the Nigerian Stock market Reply by nikky amadi on Friday July 10, 2015 at 10:47:41:

pls I want to sell my shares, I bought it in the year 2008,pls how do I sell it?

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