Yes, it is compulsory to have both a CSCS account and a CHN before you can buy or own shares in Nigerian companies. But you do not need to worry about how to get them, because your stockbroker will set them up for you when you sign up most preferably through you app,do your kyc and provide other relRead more
Yes, it is compulsory to have both a CSCS account and a CHN before you can buy or own shares in Nigerian companies. But you do not need to worry about how to get them, because your stockbroker will set them up for you when you sign up most preferably through you app,do your kyc and provide other relevant informations as are needed..
Think of it like this:
· CSCS Account: This is like your bank account for shares. All your shares are kept safely there electronically, not as paper certificates.
· CHN (Clearing House Number): This is like your personal account number inside that CSCS “bank.” It is a special number that identifies you and tracks all the shares you own.Think of BVN, then that is what your ChN is in the investment world.
So, you cannot receive or keep shares without these two things. The good news is you do not have to apply for them separately. When you go to a licensed stockbroker to open an investment account, they will automatically create your CSCS account and give you your CHN as part of that same process.
You cannot buy shares directly from the stock market; you must go through a stockbroker. They are the ones who will help you get everything you need to start.
That Facebook post sounds smart, but it uses a dangerous trick: It compares a guaranteed fantasy to a risky reality. Here is why the math may be misleading, and how to think about this differently: 1. He forgot the biggest word in investing: RISK His business example assumes you will make N50,000 prRead more
That Facebook post sounds smart, but it uses a dangerous trick: It compares a guaranteed fantasy to a risky reality.
Here is why the math may be misleading, and how to think about this differently:
1. He forgot the biggest word in investing: RISK
His business example assumes you will make N50,000 profit every single week for 5 years straight.
In real life, what happens? Customers stop buying, your machine breaks, your supplier doubles prices, or a pandemic hits. 80% of small businesses fail in the first few years.
If that business fails in year one, your N1,000,000 becomes N0.
Meanwhile, a diversified stock portfolio (like the S&P 500) has never lost money over any 20-year period in history. The 10% return is statistically likely; the N50k weekly profit is just a wish.
2. It also ignored TIME and ENERGY (The “Starving” Part)
If you put N1m in a business, you must work in it full-time. No sleep, no holidays, constant stress. Your “foundation” (your mental health and time) is now starving because the business owns you.
If you put N1m in stocks, you do nothing. You keep your day job, you rest, you learn new skills. The money works while you sleep. That isn’t “lazy”—that is smart leverage.
3. Liquidity matters (Can you eat your business?)
If an emergency happens next month, you can sell your stocks on Monday and have your cash by Tuesday.
If an emergency happens and your money is in a “personal business,” your money is tied up in stock, rent, and equipment. You cannot sell half your inventory quickly to pay a hospital bill.
So, what is the real answer to “Timing and Experience”?
· As a Beginner (Low experience, low surplus): PICK STOCKS. Your goal is not to get rich; your goal is to protect your capital and let it grow safely while you use your energy to learn a trade or keep a steady job. You are not “funding an empire”—you are buying a tiny piece of a stable company (like Coca-Cola) that pays you dividends.
· As an Expert (High experience, high surplus): PICK BUSINESS. Once you have 2 to 3 years of salary saved in stocks as a safety net, then use surplus money to start a business. Now, if the business fails, your foundation (savings) is still safe.
The Final Truth:
The Facebook post calls stocks “lazy” because it wants you to work hard. But working hard does not equal working smart.
Stocks are the foundation; Business is the skyscraper.
You do not build a skyscraper on starving ground. You build a solid foundation (stocks) first. When that foundation is strong, you use your surplus to build the empire.
There is a bit of a problem to pit them against each other. They are teammates. Stocks protect your money; business multiplies your money. Don’t gamble your only N1m on a business. Invest it safely, keep your day job, and start that business only when you can afford to lose the money.
Thanks sir but here is the exact issue. The original units I bought back then was 300 units while the 370 are cumulative bonuses. I had 3 certificates comprising of the main purchase while 2 are for bonus shares. But when I reached out to the registrars to commence the process seeking for my statusRead more
Thanks sir but here is the exact issue. The original units I bought back then was 300 units while the 370 are cumulative bonuses. I had 3 certificates comprising of the main purchase while 2 are for bonus shares. But when I reached out to the registrars to commence the process seeking for my status which they sent,it was from there that I knew there were other bonuses which I was not in the picture off and thankfully the status they sent me had the share certificate number. While all my informational are constant.and that company is oando plc.
Thanks But on this bond fund stuff I am just watching it misbehave patiently for even when it has turned green, it is still less than initial invested amount. But will tell the story from practical experience in due time
Thanks
But on this bond fund stuff I am just watching it misbehave patiently for even when it has turned green, it is still less than initial invested amount. But will tell the story from practical experience in due time
Is a CSCS Account and CHN Number Required to Invest in Nigerian Equities?
Yes, it is compulsory to have both a CSCS account and a CHN before you can buy or own shares in Nigerian companies. But you do not need to worry about how to get them, because your stockbroker will set them up for you when you sign up most preferably through you app,do your kyc and provide other relRead more
Yes, it is compulsory to have both a CSCS account and a CHN before you can buy or own shares in Nigerian companies. But you do not need to worry about how to get them, because your stockbroker will set them up for you when you sign up most preferably through you app,do your kyc and provide other relevant informations as are needed..
Think of it like this:
· CSCS Account: This is like your bank account for shares. All your shares are kept safely there electronically, not as paper certificates.
· CHN (Clearing House Number): This is like your personal account number inside that CSCS “bank.” It is a special number that identifies you and tracks all the shares you own.Think of BVN, then that is what your ChN is in the investment world.
So, you cannot receive or keep shares without these two things. The good news is you do not have to apply for them separately. When you go to a licensed stockbroker to open an investment account, they will automatically create your CSCS account and give you your CHN as part of that same process.
You cannot buy shares directly from the stock market; you must go through a stockbroker. They are the ones who will help you get everything you need to start.
And I hope mama ngozi also understand this one
See lessIs Investing ₦1 Million in Stocks Better Than Starting a Business in Nigeria?
That Facebook post sounds smart, but it uses a dangerous trick: It compares a guaranteed fantasy to a risky reality. Here is why the math may be misleading, and how to think about this differently: 1. He forgot the biggest word in investing: RISK His business example assumes you will make N50,000 prRead more
That Facebook post sounds smart, but it uses a dangerous trick: It compares a guaranteed fantasy to a risky reality.
Here is why the math may be misleading, and how to think about this differently:
1. He forgot the biggest word in investing: RISK
His business example assumes you will make N50,000 profit every single week for 5 years straight.
In real life, what happens? Customers stop buying, your machine breaks, your supplier doubles prices, or a pandemic hits. 80% of small businesses fail in the first few years.
If that business fails in year one, your N1,000,000 becomes N0.
Meanwhile, a diversified stock portfolio (like the S&P 500) has never lost money over any 20-year period in history. The 10% return is statistically likely; the N50k weekly profit is just a wish.
2. It also ignored TIME and ENERGY (The “Starving” Part)
If you put N1m in a business, you must work in it full-time. No sleep, no holidays, constant stress. Your “foundation” (your mental health and time) is now starving because the business owns you.
If you put N1m in stocks, you do nothing. You keep your day job, you rest, you learn new skills. The money works while you sleep. That isn’t “lazy”—that is smart leverage.
3. Liquidity matters (Can you eat your business?)
If an emergency happens next month, you can sell your stocks on Monday and have your cash by Tuesday.
If an emergency happens and your money is in a “personal business,” your money is tied up in stock, rent, and equipment. You cannot sell half your inventory quickly to pay a hospital bill.
So, what is the real answer to “Timing and Experience”?
· As a Beginner (Low experience, low surplus): PICK STOCKS. Your goal is not to get rich; your goal is to protect your capital and let it grow safely while you use your energy to learn a trade or keep a steady job. You are not “funding an empire”—you are buying a tiny piece of a stable company (like Coca-Cola) that pays you dividends.
· As an Expert (High experience, high surplus): PICK BUSINESS. Once you have 2 to 3 years of salary saved in stocks as a safety net, then use surplus money to start a business. Now, if the business fails, your foundation (savings) is still safe.
The Final Truth:
The Facebook post calls stocks “lazy” because it wants you to work hard. But working hard does not equal working smart.
Stocks are the foundation; Business is the skyscraper.
You do not build a skyscraper on starving ground. You build a solid foundation (stocks) first. When that foundation is strong, you use your surplus to build the empire.
There is a bit of a problem to pit them against each other. They are teammates. Stocks protect your money; business multiplies your money. Don’t gamble your only N1m on a business. Invest it safely, keep your day job, and start that business only when you can afford to lose the money.
See lessWhy Are My Dematerialized Shares Not Fully Credited to My CSCS Account in Nigeria?
Thanks sir but here is the exact issue. The original units I bought back then was 300 units while the 370 are cumulative bonuses. I had 3 certificates comprising of the main purchase while 2 are for bonus shares. But when I reached out to the registrars to commence the process seeking for my statusRead more
Thanks sir but here is the exact issue. The original units I bought back then was 300 units while the 370 are cumulative bonuses. I had 3 certificates comprising of the main purchase while 2 are for bonus shares. But when I reached out to the registrars to commence the process seeking for my status which they sent,it was from there that I knew there were other bonuses which I was not in the picture off and thankfully the status they sent me had the share certificate number. While all my informational are constant.and that company is oando plc.
See lessWhy Is My Sell Order for BUA Cement Shares Still Showing as "Executing" on the NGX?
Waw this provided more clarity sir, thanks so much am also gradually becoming a stock pro.
Waw this provided more clarity sir, thanks so much am also gradually becoming a stock pro.
See lessWhat Should I Do When My Equity Fund Drops During a Market Downturn?
Waw thanks so much sir. So no worries even if the deep eats into my initial capital. Its actually not for short term
Waw thanks so much sir. So no worries even if the deep eats into my initial capital. Its actually not for short term
See lessHow Can I Recover Payment for Shares That Were Delisted and Converted to Cash in Nigeria?
Thanks so much sir
Thanks so much sir
See lessHow do bond funds work in Nigeria and why do prices go up and down?
Thanks But on this bond fund stuff I am just watching it misbehave patiently for even when it has turned green, it is still less than initial invested amount. But will tell the story from practical experience in due time
Thanks
See lessBut on this bond fund stuff I am just watching it misbehave patiently for even when it has turned green, it is still less than initial invested amount. But will tell the story from practical experience in due time
How Can Cooperative Societies Help Families Survive Economic Hardship In Nigeria?
This seriously helps as always thanks sir
This seriously helps as always thanks sir
See lessIs It Normal to Submit Hard Copy Documents for Share Dematerialization and CSCS Transfer in Nigeria?
Thanks sir for your prompts response all of the time.
Thanks sir for your prompts response all of the time.
See lessIs It Wise to Take a Cooperative Society Loan to Invest in the Nigerian Stock Market?
This also helps sir.thanks so much please
This also helps sir.thanks so much please
See less