FAQs
| Questions | |
| Who is an Investor? | |
| What are Stocks and Shares? | |
| Why do people buy Stocks and Shares? | |
| How are Stocks and Shares bought? | |
| Who is a Stockbroker? | |
| What are some services provided by a stockbroker or stock broking firm? | |
| Which Stocks should I choose (as an investor)? | |
| What does an investor gaain by buying shares? | |
| What are Bonds and Debentures? | |
| What is CSCS? | |
| What is Trade Alert? | |
| What are the benefits of Trade Alert? | |
| Answers | |
| Q: | Who is an Investor? |
| A: | A person or an institution who uses his savings or borrowings to buy securities (stocks and shares). |
| back to top | |
| Q: | What are Stocks and Shares? |
| A: | Stocks amd Shares represent ownership interest in a business. |
| back to top | |
| Q: | Why do people buy Stocks and Shares? |
| A: | To share inb the fortunes of companies. |
| back to top | |
| Q: | How are Stocks and Shares bought? |
| A: | Stocks and Shares are bought and sold on the Nigerian Stock Exchange through dealing members known as Stock Brokers. |
| back to top | |
| Q: | Who is a Stockbroker? |
| A: | A Stockbroker is a dealing member of the Nigerian Stock Exchange. He provides services to anyone(an investor) who wants to buy and/or sell shares and stocks. A Stockbroker provides a personal service. So before you begin, talk with a few and find out what services they offer. |
| back to top | |
| Q: | What are some services provided by a stockbroker or stock broking firm? |
| A: | a. Buying and Selling of securities(shares and stocks). b. Helping the investor to plan his investments (provide professional advice on the selection and management of investments). c. Securities Management (looking after the investor porfolio of shares). d. Assist project sponsors to raise money on the capital market. |
| back to top | |
| Q: | Which Stocks should I choose (as an investor)? |
| A: | That depends on what you want from your investments. The Stocks quoted on the NSE range from government stocks to ordinary shares and their dividends vary from low to high. The important thing is to determine your own objective first, discuss with a stock broker and then invest accordingly. |
| back to top | |
| Q: | What does an investor gaain by buying shares? |
| A: | - dividends - which is a part of company's profit. - bonus shares i.e. extra shares fully paid out of reserves which are distibuted to existing holders. - Capital appreciation as market prices of share increase. - right to attend meeting of share holders and participated in its deliberationb as voting members. - use of share certificates as collateral for bank borrowing. - right to attend meeting of share holders and participate in its deliberation as voting members. |
| back to top | |
| Q: | What are Bonds and Debentures? |
| A: | They are other kinds of securities. They are legal documents representing aromise by the company or by government (in the case of a bond)to pay back a loan, plus a certain amount of interest over a definite period of time. |
| back to top | |
| Q: | What is CSCS? |
| A: | CSCS stands for Central Securities Clearing Sytems. The CSCS operates a computerized clearing settlement and delivery system for transaction in securities listed on the Nigerian Stock Exchange. It is the central depository for share certificates of companies listed on the Exchange. |
| back to top | |
| Q: | What is Trade Alert? |
| A: | it is an automated stockholder alert system that notifies investors of movements in their CSCS accounts through their mobile phones. |
| back to top | |
| Q: | What are the benefits of Trade Alert? |
| A: | - empowers investors with a tool for independent monitoring of their investment accounts at the CSCS. - eliminates chances of unauthorized transactions in investors account. - report of stock market activities - notices of AGM's, quaterly financial highlights of quoted companies, weekly price movement of stocks etc. |
| back to top | |