INVESTING & WEALTH BUILDING
This section answers real questions about investing in Nigeria. Learn how to invest in stocks market, treasury bills, bonds, NIDF, Commecial Papers and other opportunities. Whether you are a beginner or experienced, you will find simple guidance to grow your money.
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Is Money Market Fund Better Than Naira Savings on Bamboo for Long-Term Investment?
For your specific goal—saving ₦20,000 monthly for 10–15 years for your child's education—I would lean toward a Money Market Fund (MMF) over Bamboo Naira Savings, even though the current quoted rates are very close. Key difference Factor Money Market Fund (MMF) Bamboo Naira Savings Current yield VariRead more
For your specific goal—saving ₦20,000 monthly for 10–15 years for your child’s education—I would lean toward a Money Market Fund (MMF) over Bamboo Naira Savings, even though the current quoted rates are very close.
See lessKey difference
Factor
Money Market Fund (MMF)
Bamboo Naira Savings
Current yield
Varies with market rates
Fixed for the chosen tenor
Return stability
Fluctuates over time
Locked when you create a savings plan
Compounding
Usually automatic (NAV growth/reinvestment)
Auto-rollover available at maturity
Liquidity
Generally easier access
Early liquidation may reduce earnings
Long-term flexibility
Excellent for regular monthly contributions
Better suited for fixed-term savings goals
Bamboo’s Naira Savings product allows automatic rollover and can lock in a rate for a specific tenor. Early liquidation may attract a penalty on earned interest.
Money Market Funds invest in Treasury Bills, commercial papers, certificates of deposit and similar short-term instruments. Their yields move up and down as interest rates in the market change.
Does MMF interest fluctuate?
Yes.
An MMF offering 16.83% today is not guaranteeing 16.83% for the next 10–15 years. If interest rates fall, the yield can decline; if rates rise, the yield can increase. Returns depend on prevailing money-market conditions.
Does MMF automatically reinvest?
Generally, yes.
Most Nigerian MMFs are open-ended funds where income is reflected in the fund’s unit price (NAV) or periodically reinvested unless you redeem. This effectively creates compounding without you needing to manually reinvest every distribution. The exact mechanism depends on the fund manager.
Which would I choose?
Since you’ve previously mentioned that your daughter was born in May 2025 and you’re specifically building an education fund over a long horizon, I would rank the options as follows:
MMF for ongoing monthly contributions.
Bamboo Naira Savings for money you want to lock for a specific period.
Over time, consider gradually adding an equity fund component once the education fund becomes sizeable and your risk tolerance allows it.
The biggest advantage of the MMF here is flexibility. You can keep adding ₦20,000 every month without creating new locked savings plans, and your money remains relatively accessible if circumstances change.
One more thing
For a 10–15 year education goal, the bigger risk is not whether you earn 16.83% or 16.25%. The difference between those two rates is very small. The bigger risk is that both are naira-denominated investments and may struggle to outpace education-cost inflation over such a long period.
A practical approach could be:
Keep the foundation in an MMF.
As the fund grows, allocate part of future contributions to growth-oriented investments (such as equity funds) to improve the chances of beating inflation over the long term.
Between the two options you listed today, I would choose the MMF, assuming it is a reputable SEC-regulated fund with a good track record and low redemption friction. The extra flexibility is worth more than the small 0.58% difference in quoted yield.
Why Is My Wema Bank Shares Dematerialization Delayed in Nigeria?
A 10-week delay is longer than what most investors would reasonably expect for a straightforward dematerialization, especially when all documents were submitted correctly. Since you've already contacted Cowrywise, Meristem, and the registrar, the next step is to escalate formally and create a documeRead more
A 10-week delay is longer than what most investors would reasonably expect for a straightforward dematerialization, especially when all documents were submitted correctly. Since you’ve already contacted Cowrywise, Meristem, and the registrar, the next step is to escalate formally and create a documented trail.
What I would do next
1. Demand written confirmation from Meristem
Meristem is the stockbroker handling the dematerialization, so they should be able to provide:
Date the application was submitted to the registrar.
Dematerialization reference number (if any).
Acknowledgement copy or dispatch evidence sent to the registrar.
Current status of the request.
Send an email and insist on a written response rather than phone conversations.
2. Copy all parties in one email
Write a single email addressed to:
Cowrywise
Meristem Securities
Greenwich Registrars & Data Solutions
State:
Shareholder name.
Wema Bank share certificate details.
Date application was submitted.
That 10 weeks have elapsed without resolution.
That the registrar has requested an acknowledgement copy which has not been provided.
Request a response within 5 working days.
3. Escalate to the broker’s compliance unit
If Meristem does not respond satisfactorily, ask specifically for:
Compliance Officer.
Head of Customer Experience.
Managing Director’s office.
A compliance complaint often receives quicker attention than ordinary customer service enquiries.
4. Escalate to the regulator
If another week passes without progress, file a formal complaint with the Nigerian capital market regulator:
sec.gov.ng�
Provide:
Copies of emails.
Share certificate details.
Evidence of submission.
Names of Cowrywise and Meristem representatives contacted.
SEC typically expects capital market operators to respond to investor complaints.
5. Contact Wema Bank Investor Relations
Since these are Wema Bank shares, you can also notify:
wemabank.com�
They may direct the registrar to review the matter or advise on any known issues affecting share transfers.
Possible reasons for the delay
Common causes include:
Signature mismatch.
Name discrepancy between certificate and CSCS account.
Missing registrar acknowledgement.
Backlog at the registrar.
Broker failing to forward documents promptly.
Unresolved shareholder verification issues.
The fact that the registrar asked for an acknowledgement copy suggests they may not have complete visibility of the submission, which is why obtaining proof from Meristem is now critical.
Suggested approach
At this stage, stop going back and forth individually. Send one escalation email to all three parties (Cowrywise, Meristem, and Greenwich) requesting:
Proof of submission.
Current status.
Expected completion date.
If there is no meaningful response within 5–7 working days, escalate directly to
Subject
Escalation: Outstanding Dematerialization of Wema Bank Plc Shares – Request for Immediate Resolution
Dear Sir/Madam,
I am writing to formally escalate the prolonged delay in the dematerialization of my Wema Bank Plc shares.
My dematerialization application was submitted through Cowrywise, which engaged Meristem Securities as the stockbroker handling the process. As of today, over ten (10) weeks have elapsed since submission, yet I have not received confirmation of completion, a clear status update, or any indication of when the process will be concluded.
During my follow-up efforts, I have been repeatedly referred between Cowrywise and Meristem without receiving a definitive response. I also contacted Greenwich Registrars & Data Solutions directly and was informed that an acknowledgement copy or evidence of submission is required. Unfortunately, despite multiple requests, I have been unable to obtain this document from either Cowrywise or Meristem.
I respectfully request the following:
1. Confirmation of the current status of my dematerialization request.
2. A copy of the acknowledgement, submission receipt, or any evidence showing that my application was forwarded to the registrar.
3. Clarification of any outstanding issues, deficiencies, or discrepancies affecting the process.
4. A definite timeline for completion of the dematerialization.
I believe ten weeks is more than sufficient time for an update or resolution, and the continued lack of clarity is causing significant inconvenience, particularly as I intend to rebalance my investment portfolio and require access to these shares.
Kindly treat this matter as urgent and provide a written response within five (5) working days of receipt of this email.
Should I not receive a satisfactory response within this period, I will be compelled to escalate the matter through the appropriate regulatory channels, including the Securities and Exchange Commission (SEC), while providing a full record of my correspondence and follow-up efforts.
I appreciate your prompt attention and look forward to an immediate resolution.
Yours faithfully,
[Your Full Name]
See less[CSCS Account Number, if applicable]
[CHN Number, if applicable]
[Phone Number]
[Email Address]
What Is Better for a Child’s Education: Money Market Funds or Endowment Plans in Nigeria?
Your concern is valid. Many parents buy education endowment plans without comparing them to other investment options. However, before concluding that you made a mistake, there is an important issue with your calculation: 1. The endowment plan may not be a pure savings product Most education endowmenRead more
Your concern is valid. Many parents buy education endowment plans without comparing them to other investment options.
See lessHowever, before concluding that you made a mistake, there is an important issue with your calculation:
1. The endowment plan may not be a pure savings product
Most education endowment plans in Nigeria are offered by insurance companies. Your ₦20,000 monthly contribution is usually split into:
Savings/investment component
Life insurance cover
Administrative charges
Agent commissions and expenses
So the “15% p.a.” quoted may not apply to the entire ₦20,000 contribution the same way an MMF return applies to invested funds.
You should request the policy illustration and ask:
Total amount payable after 10 years
Guaranteed amount versus projected amount
Surrender value if you stop early
Insurance benefits included
Without those details, it is difficult to make an exact comparison.
2. Your MMF calculation is not directly comparable
You entered:
Initial investment: ₦20,000
Monthly contribution: ₦20,000
17% annual return
Monthly compounding
10 years
That produces a much higher figure because:
Returns are compounded.
The assumed 17% return is maintained for the entire 10 years.
Every naira remains invested and earning.
But MMF returns are not guaranteed. Today’s yields may be 17%, but over a 10-year period they could be:
10% in some years
15% in some years
20% in some years
The actual average return matters.
3. A rough comparison
If you invest ₦20,000 monthly for 10 years:
Return
Approximate Value After 10 Years
10%
~₦4.1 million
15%
~₦5.5 million
17%
~₦6.3 million
20%
~₦7.7 million
So mathematically, a compounding investment such as an MMF will generally outperform a traditional endowment plan if the returns are similar and the fees are lower.
4. Did you make a mistake?
Not necessarily.
The endowment plan provides something MMFs do not:
Forced discipline
Life insurance protection
Education-targeted savings
Protection if the parent dies or becomes disabled (depending on policy terms)
The question is whether those benefits justify the lower expected return.
5. What I would do now
Since your daughter is only about 1 year old, I would:
Step 1: Obtain the full policy schedule and benefits illustration.
Step 2: Check:
Surrender charges
Current cash value
Penalties for cancellation
Step 3: Compare the projected maturity value with alternative investments such as:
Money Market Funds
Treasury Bill Funds
Balanced Funds
If the cancellation penalty is small because the policy is still relatively new, it may be worth considering redirecting future contributions into higher-growth investments.
6. For a child with a 10–15 year horizon
If this were my decision, I would generally prefer a combination such as:
30–40% in a Money Market Fund for stability.
60–70% in an Equity Fund or diversified stock investment for long-term growth.
A child born in 2025 has roughly 16–18 years before university. That is a long enough period to benefit from compounding and stock market growth.
For example, Nigerian equity funds have historically delivered much higher long-term returns than MMFs, although with greater volatility.
When Is the Best Time to Buy or Exit an Equity Fund in Nigeria?
This is one of the most important questions in investing. Is there a specific time to buy equity funds or stocks? No one can consistently predict the perfect entry and exit point. Even professional fund managers get it wrong sometimes. Instead of trying to buy at the exact bottom and sell at the exaRead more
This is one of the most important questions in investing.
See lessIs there a specific time to buy equity funds or stocks?
No one can consistently predict the perfect entry and exit point.
Even professional fund managers get it wrong sometimes.
Instead of trying to buy at the exact bottom and sell at the exact top, successful investors usually follow one of these approaches:
For Equity Funds
The best times are often:
When you have money available to invest.
During market corrections and downturns.
Through regular monthly contributions.
Because equity funds are long-term investments, many investors simply buy consistently and let time work for them.
For Individual Stocks
Before buying a stock, ask:
Is the company profitable?
Does it pay dividends (if income is important to you)?
Is the share price reasonable relative to its earnings?
Does the company have good long-term prospects?
A good company bought at a fair price is often better than chasing a “hot” stock.
When should you exit?
Equity Funds
Consider exiting when:
You need the money for a planned goal.
Your investment horizon has ended.
The fund no longer matches your objectives.
Not simply because the market dropped.
Individual Stocks
Consider selling when:
The company’s fundamentals deteriorate.
Management quality declines.
You find a better investment opportunity.
The stock becomes extremely overvalued.
Which is better: Equity Funds or Individual Stocks?
For most beginners, equity funds are usually the better starting point.
Equity Funds
Individual Stocks
Diversified
Concentrated risk
Managed by professionals
You make all decisions
Lower research burden
Requires research
Less stressful
More volatile
Suitable for beginners
Better for experienced investors
For someone in your position
Based on our previous discussions, you’re still building your investment foundation and learning the market.
A sensible approach could be:
Keep an emergency reserve in a Money Market Fund.
Build a core position in a Nigerian equity fund.
Gradually learn stock analysis.
Later allocate a smaller portion (perhaps 10–20% of your investment portfolio) to individual stocks.
This way, you’re participating in the stock market while reducing the risk of making costly mistakes as a beginner.
A simple rule to remember:
Buy because an investment is valuable, not because everyone is excited.
Sell because your reason for owning it has changed, not because the market became fearful.
What Should I Do When My Equity Fund Drops During a Market Downturn?
What you're experiencing is one of the most important lessons in equity investing: An equity fund can go down even when you've made a profit. If your investment grew from, say, ₦100,000 to ₦112,000 and is now at ₦108,000, you have not lost capital yet. What you've lost is part of your unrealized gaiRead more
What you’re experiencing is one of the most important lessons in equity investing:
See lessAn equity fund can go down even when you’ve made a profit.
If your investment grew from, say, ₦100,000 to ₦112,000 and is now at ₦108,000, you have not lost capital yet. What you’ve lost is part of your unrealized gain. There is a psychological difference between:
Losing profit, and
Losing principal (your original capital).
The key question is not, “Should I move to a Money Market Fund (MMF) now?”
The key question is, “Why did I invest in the equity fund in the first place?”
If your goal is long-term wealth (3–10+ years)
Market declines are normal.
Equity funds invest in stocks, and stocks do not move in a straight line. There will be:
Profit-taking periods
Market corrections
Economic uncertainty
Earnings disappointments
If your investment horizon is several years, a temporary decline is often the price paid for potentially higher long-term returns.
If your goal is short-term capital preservation
Then an equity fund may not have been the right vehicle to begin with.
Money Market Funds are designed for:
Stability
Liquidity
Lower volatility
But they generally offer lower long-term growth than equities.
The danger of moving now
Many investors make this mistake:
Equity fund rises.
Market falls.
Investor panics and sells.
Money moves to MMF.
Market recovers.
Investor buys back at a higher price.
They effectively sell low and buy high.
A framework for deciding
Ask yourself:
1. Do I need this money within the next 12 months?
Yes → Consider reducing equity exposure.
No → Staying invested may make sense.
2. Has the reason I invested changed?
If not, a falling market alone is usually not a sufficient reason to exit.
3. Am I uncomfortable because of the volatility, or because I genuinely need the money?
These are different issues.
What many disciplined investors do
Instead of moving everything to MMF, they:
Keep an emergency fund in MMF.
Continue regular contributions to equity funds.
Use downturns to accumulate more units at lower prices.
This is often called averaging or buying through the cycle.
For your specific situation
Based on our previous discussions, you are still relatively new to investing and are building wealth gradually. In your case, I would be cautious about making large allocation changes solely because the market has pulled back.
Before moving money, ask:
What percentage of your total savings is in the equity fund?
How long have you been invested?
Is this money earmarked for school fees, business capital, or another near-term need?
If the money is not needed soon, a decline by itself is usually not evidence that you’ve made a mistake. Sometimes the hardest part of equity investing is sitting through the periods when the market tests your conviction.
How Do I Start Investing in Stanbic IBTC Money Market Mutual Funds?
To start investing in the Stanbic IBTC Asset Management Money Market Fund, you do not need a referral code. Stanbic allows direct account opening and investment online. Step 1: Open an Investment Account Visit: stanbicibtcfundsmanagement.com You will need: BVN Valid ID (National ID, Voter's Card, DrRead more
To start investing in the Stanbic IBTC Asset Management Money Market Fund, you do not need a referral code. Stanbic allows direct account opening and investment online.
See lessStep 1: Open an Investment Account
Visit:
stanbicibtcfundsmanagement.com
You will need:
BVN
Valid ID (National ID, Voter’s Card, Driver’s License, or International Passport)
Passport photograph
Utility bill or proof of address
Bank account details
These are the standard KYC requirements
Step 2: Fund Your Investment
The current minimum initial investment is ₦5,000. Subsequent investments can also start from ₦5,000.
Step 3: Understand the Fund
The fund invests primarily in:
Treasury Bills
Commercial Papers
Fixed Deposits
Other high-quality money market instruments
Its objective is capital preservation and steady income generation with relatively low risk.
Before You Invest
Since we’ve discussed your interest in:
FGN Savings Bonds
Nigerian Bond Funds
ETFs
Potential IPOs such as Dangote Refinery
I would suggest a beginner allocation like this if you have ₦50,000:
₦25,000 → Money Market Fund (liquidity and safety)
₦15,000 → FGN Savings Bond when available
₦10,000 → Quality dividend-paying Nigerian shares (gradually)
This lets you build experience while avoiding concentration in a single investment.
One thing to note: Stanbic’s Money Market Fund has a 30-day minimum holding period. Redeeming earlier may attract a penalty on accrued income.
If your goal is long-term wealth creation (10+ years), I can also show you how Stanbic Money Market Fund compares with:
Meristem Money Market Fund
Vetiva Money Market Fund
Nigerian Treasury Bills
Nigerian Bond Funds
Dividend stocks on the NGX
and which combination is likely to give the best balance of growth and safety.
Why Did My Stock Buy Order Fail Before the 7-Day Expiry Period in Nigeria?
If your buy order remained active for 7 days and then expired without execution, the most common reasons are: No matching seller at your price You placed a limit buy order. Sellers were not willing to sell at the price you specified. After 7 days, the order automatically expired. Insufficient liquidRead more
If your buy order remained active for 7 days and then expired without execution, the most common reasons are:
See lessNo matching seller at your price
You placed a limit buy order.
Sellers were not willing to sell at the price you specified.
After 7 days, the order automatically expired.
Insufficient liquidity
Some Nigerian stocks trade very infrequently.
Even if buyers exist, there may not have been enough sellers during the validity period.
Price movement
If the market price moved above your bid price and stayed there, your order would remain unfilled until expiry.
Broker/platform processing issue
Less common, but possible.
Usually the broker should notify you if there was a system or compliance issue.
The valuation statement you received actually suggests that:
Your cash was safe.
No shares were purchased.
Your CSCS account was not credited because no trade occurred.
The order simply expired unexecuted.
To know the exact reason, check:
Which stock was it?
What price did you bid?
What was the market price during those 7 days?
You can also reply to the broker’s email with something like:
“My order expired after 7 days without execution. Kindly confirm whether the order failed due to lack of sellers, my bid price being below market price, or any other reason.”
As a Beginner in Nigeria, What Investment Plan Should I Choose?
With ₦50,000 as a beginner, I would focus less on "finding the best stock" and more on building a solid investment process. Step 1: Keep some liquidity Before investing, make sure you have some emergency cash available. If ₦50,000 is all the money you have, don't put 100% into shares. A simple allocRead more
With ₦50,000 as a beginner, I would focus less on “finding the best stock” and more on building a solid investment process.
See lessStep 1: Keep some liquidity
Before investing, make sure you have some emergency cash available. If ₦50,000 is all the money you have, don’t put 100% into shares.
A simple allocation could be:
₦20,000–₦25,000 in a Money Market Fund
₦25,000–₦30,000 in shares or an ETF
This gives you both stability and growth potential.
Step 2: Prefer diversification over stock picking
For a beginner, an ETF is often safer than trying to pick individual winners.
Consider:
Vetiva Griffin 30 ETF
It tracks a basket of major Nigerian companies, so you are not relying on the fortunes of a single business.
Step 3: If buying individual shares
Focus on quality companies with:
Consistent profits
Regular dividends
Strong market position
Long operating history
Examples on the Nigerian Exchange include:
GTCO
Zenith Bank
Presco
Seplat Energy
Nestlé Nigeria
That does not mean they will always rise, but they are generally stronger businesses than speculative penny stocks.
A sample ₦50,000 beginner portfolio
Option A (balanced):
₦25,000 Money Market Fund
₦25,000 ETF
Option B (growth-oriented):
₦20,000 Money Market Fund
₦15,000 GTCO
₦15,000 Zenith Bank
Option C (very simple):
Invest the entire ₦50,000 in a Money Market Fund while you continue learning, then add monthly contributions and start buying shares later.
Most important
The biggest determinant of your future wealth is unlikely to be what you do with this first ₦50,000.
Suppose you invest ₦50,000 today and then add ₦20,000 every month for the next 10 years. The monthly investing will matter far more than the initial ₦50,000.
So focus on:
Investing regularly.
Reinvesting dividends.
Avoiding “hot tips” and speculative stocks.
Building ownership of productive assets over time.
Given what you’ve shared in previous conversations, you’re already learning about Money Market Funds, FGN Savings Bonds, ETFs, and shares. For a beginner in Nigeria, that combination is generally a much stronger foundation than chasing the latest IPO or trying to find the next stock that will double overnight.
Will the Dangote Refinery IPO Affect My CSCS and CHN Account Trading on Meritrade?
Since you already have a CHN and CSCS account linked through your broker, you are in a good position for any future IPO participation on the Nigerian market. About the Dangote Refinery IPO First, don't worry about your previous trade execution issues affecting a future IPO automatically. IPO subscriRead more
Since you already have a CHN and CSCS account linked through your broker, you are in a good position for any future IPO participation on the Nigerian market.
See lessAbout the Dangote Refinery IPO
First, don’t worry about your previous trade execution issues affecting a future IPO automatically. IPO subscriptions and secondary-market share trading are often handled differently by brokers.
However, there is an important update: Dangote Refinery has previously denied several unofficial reports about an imminent IPO and advised investors to rely only on official announcements. More recently, reports have indicated a possible listing later in 2026, but investors should still wait for formal NGX and company disclosures before making plans.
When the IPO is officially launched:
Confirm your broker account is active.
Ensure your CHN and CSCS details are correct.
Fund your brokerage account before the offer closes.
Follow the subscription instructions from your broker.
If Meritrade participates in the offer, your existing CHN and CSCS should normally be sufficient for allocation and settlement.
What if my previous trades were not executed?
That depends on why they failed:
Insufficient funds?
Wrong order type?
No matching seller/buyer?
Technical issue with the platform?
A failed trade in the past does not usually disqualify you from participating in an IPO.
About SpaceX
SpaceX is currently publicly traded in the United States following its June 2026 IPO, and retail investors can buy shares through brokers that provide access to U.S. stocks.
For a Nigerian investor, platforms that provide access to U.S. equities may include:
investbamboo.com
troveapp.co
risevest.com
Before opening an account specifically for SpaceX, verify that the platform currently offers access to the stock and check the trading symbol available on that platform.
Given your investing journey so far, I would suggest not committing a very large percentage of your portfolio to a single IPO—whether Dangote Refinery or SpaceX. IPOs can be highly volatile in their first few months, while your existing approach of combining money market funds, government securities, ETFs, and quality shares provides better diversification.
What exactly happened when your previous trades on Meritrade were not executed? Were they buy orders, sell orders, or IPO subscriptions? That will help me identify whether there is any issue you need to fix before the Dangote offer opens.
How Can I Dematerialize My Share Certificate in Nigeria?
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbrokerRead more
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbroker.
See lessHow to Dematerialize Share Certificates in Nigeria
Open a CSCS account
If you don’t already have one, open a CSCS account through a registered stockbroker or investment platform that provides stockbroking services.
Gather your documents
Original share certificate(s)
Valid means of identification
Passport photograph (if required)
Completed Dematerialization Form from your stockbroker
Submit the documents
Give the original certificates and completed forms to your stockbroker.
The broker forwards them to the company’s registrar for verification.
Verification and Credit
The registrar verifies the certificates.
Once approved, the shares are credited electronically to your CSCS account.
Confirmation
You receive confirmation from your broker when the shares appear in your CSCS account.
How Much Does It Cost?
For most investors, dematerialization itself is usually free or attracts minimal administrative charges, depending on the broker and registrar involved. However:
Some stockbrokers may charge processing fees.
You may incur costs if there are issues such as name discrepancies, signature updates, estate-related transfers, or lost certificates.
It is best to confirm the current charges with your stockbroker before submission.
If the Certificates Are Old
If the certificates are from many years ago:
Check whether the company still exists or has undergone mergers, acquisitions, or restructuring.
Verify whether bonus shares were issued over the years.
Update your e-dividend registration simultaneously so future dividends go directly to your bank account.