How to buy shares in Nigeria
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Posted by Felix Okoli on February 17, 2009 at 07:26:01:
In recent times in Nigeria, it has become easier for most Nigerians to buy shares from the Nigerian stock market without involving much detailed protocol forom the stockbrokers. That was made possible most especially during the recapitalization exercise carried out by banks in Nigeria. A lot of banks then sought the CBN and SEC's approval to raise public I.p.o.'s and this allowed a lot of people to buy shares through filling applications forms and making bank deposits to a special account.
To buy shares in Nigeria, you need to consider the following;
You may buy from 2 capital markets : Primary and secondary market.
In the primary market, this involves you buying directly without the stockbroker by collecting and filling the public application form and making a deposit in a bank and then waiting after the offer closes for shares to be issued to you. When filling in the form, indicate your next of kin e.g. your wife, husband or Child. Then you may also indicate you CSCS account number if you want the shares to be immediately credited into your account. You may also indicate your currrent account where dividends may be paid into for you.
The primary market involves mainly buying share direclty from teh issuing company withut buying from a third party or transfer from previous owner.
In the seocndary market, it involves buying from an already existing or owned stock. Someone is willing to sell and you are willing to buy and the stockbroker is needed ot effect the transfer for a commission. When you want to buy a share that is not on sale publicly, you'll have to fill in an application with a stockbroker who will require you to also make a payment in cheque. Even if you are asked to pay in cash, it is not safe and so always try and pay in a cheque addressed to the name of the stockbroking firm. Note also that before you transact with a stockbroking firm, try and see if it is listed and register with the Nigerian stock exchange (see http://www.nigerianstockexchange.com/exchange_members.jsp for a list).
After you make the cheque deposit with the broker, you will be given a reciept after which you will be asked to check on them about 3 days later. You can also correspond with them on phone if you have a registered phone number with them. When the share have been bought, it will be credited to your cscs account and a share certificate will be forwarded to you later by the registrar of the company. It is much faster to buy shares from the secondary market as it takes about a week unlike the primary market which has been characterized with delays which normally makes on wait for more than 6 months in Nigeria before receiving his share certificate.
Comments:
In recent times in Nigeria, it has become easier for most Nigerians to buy shares from the Nigerian stock market without involving much detailed protocol forom the stockbrokers. That was made possible most especially during the recapitalization exercise carried out by banks in Nigeria. A lot of banks then sought the CBN and SEC's approval to raise public I.p.o.'s and this allowed a lot of people to buy shares through filling applications forms and making bank deposits to a special account.
To buy shares in Nigeria, you need to consider the following;
You may buy from 2 capital markets : Primary and secondary market.
In the primary market, this involves you buying directly without the stockbroker by collecting and filling the public application form and making a deposit in a bank and then waiting after the offer closes for shares to be issued to you. When filling in the form, indicate your next of kin e.g. your wife, husband or Child. Then you may also indicate you CSCS account number if you want the shares to be immediately credited into your account. You may also indicate your currrent account where dividends may be paid into for you.
The primary market involves mainly buying share direclty from teh issuing company withut buying from a third party or transfer from previous owner.
In the seocndary market, it involves buying from an already existing or owned stock. Someone is willing to sell and you are willing to buy and the stockbroker is needed ot effect the transfer for a commission. When you want to buy a share that is not on sale publicly, you'll have to fill in an application with a stockbroker who will require you to also make a payment in cheque. Even if you are asked to pay in cash, it is not safe and so always try and pay in a cheque addressed to the name of the stockbroking firm. Note also that before you transact with a stockbroking firm, try and see if it is listed and register with the Nigerian stock exchange (see http://www.nigerianstockexchange.com/exchange_members.jsp for a list).
After you make the cheque deposit with the broker, you will be given a reciept after which you will be asked to check on them about 3 days later. You can also correspond with them on phone if you have a registered phone number with them. When the share have been bought, it will be credited to your cscs account and a share certificate will be forwarded to you later by the registrar of the company. It is much faster to buy shares from the secondary market as it takes about a week unlike the primary market which has been characterized with delays which normally makes on wait for more than 6 months in Nigeria before receiving his share certificate.
Comments:
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Re: How to buy shares in Nigeria
Posted by Pedro Ugbodaga
on July 10, 2012 at 06:36:59:
Can i buy shares without a fix or current account?
Re: How to buy shares in Nigeria Posted by Felix Okoli on July 10, 2012 at 06:36:59: You can buy with a current account or even savings account depending on the payment option available by your broker