STOCK & CAPITAL MARKET
This section helps you understand financial literacy in Nigeria in a simple and practical way. Learn how money works, how to save, budget, and build wealth step by step. You can ask questions and get clear answers that help you make better financial decisions in your everyday life.
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Which Is Better for Short-Term Investment in Nigeria: REITs or ETFs?
For short-term investments, ETFs (Exchange-Traded Funds) might be a better option than REITs (Real Estate Investment Trusts). Here's why, - Liquidity: ETFs are generally more liquid than REITs, making it easier to buy and sell quickly. - Volatility: ETFs tend to be less volatile than REITs, which caRead more
For short-term investments, ETFs (Exchange-Traded Funds) might be a better option than REITs (Real Estate Investment Trusts). Here’s why,
– Liquidity: ETFs are generally more liquid than REITs, making it easier to buy and sell quickly.
– Volatility: ETFs tend to be less volatile than REITs, which can be affected by changes in the real estate market.
– Diversification: ETFs often provide broader diversification, reducing risk.
See lessHow do beginners analyze stocks in the Nigerian stock market (NGX) before investing?
Stock is ownership of a company while shares is unit of a stock. For example, I owned dangote cement stock is a general term for STOCK while I owned 100units of dangote cement is specifying the SHARES I have in the company
Stock is ownership of a company while shares is unit of a stock. For example, I owned dangote cement stock is a general term for STOCK while I owned 100units of dangote cement is specifying the SHARES I have in the company
See lessWhat are the step by step measures to manage money?
Let me be honest. Managing money is not about how much you earn. It is about how you control what comes into your hand. Let me this better with a simple story. Imagine Mama Ngozi that sells tomatoes in the village. Every morning, she goes to the market with ₦20,000 to buy tomatoes. If she is carelesRead more
Let me be honest.
Managing money is not about how much you earn.
It is about how you control what comes into your hand.
Let me this better with a simple story.
Imagine Mama Ngozi that sells tomatoes in the village.
Every morning, she goes to the market with ₦20,000 to buy tomatoes.
If she is careless, she can sell everything and still come back home with nothing.
But if she is wise, she will grow that same ₦20,000 into ₦50,000, ₦100,000 and more over time.
The difference is not luck.
The difference is structure.
Now let me show you the exact steps.
Step 1: Know Your Money
Before you manage money, you must first understand it.
Ask yourself:
How much do I earn every week or month?
Where is my money going?
Many people are broke not because they don’t earn, but because they don’t track.
If you don’t know where your money is going, you have already lost control.
Step 2: Separate Your Money
Never keep all your money in one place mentally.
Divide your money into 3 parts:
Living expenses
Savings
Investment
Even if it is small, create this habit.
Because… Money that has no direction will disappear.
Step 3: Pay Yourself First
Before you spend on anything, remove your own share.
Even if it is 10%
That money is not for enjoyment.
It is for your future.
Mama Ngozi does not eat all her tomatoes.
She keeps some to sell again tomorrow.
Step 4: Control Your Expenses
This is where most people fail.
Just because you can afford something does not mean you should buy it.
Learn to ask:
Is this a need or a want?
Because…
Many people are working for money.
But their lifestyle is working against them.
Step 5: Build Emergency Savings
Life is unpredictable.
Before you think of big investments, have money you can fall back on.
At least 3 to 6 months of your basic expenses should be on Money Market Mutual Fund, where you can easily access your money within 24 to 48 hours.
This is what prevents you from running into debt.
Step 6: Start Investing
Saving alone will not make you wealthy.
You must make your money work.
Start simple:
Money market funds
Mutual funds
Stocks (if you understand it)
Because…
The goal is this:
Your money should be working even when you are sleeping.
Step 7: Avoid Bad Debt
Not all debt is bad.
But borrowing money to impress people is dangerous.
If you must borrow, it should be for something that can bring more money.
Step 8: Be Consistent
This is the real secret.
Not motivation
Not big grammar
Consistency
Even small money, done consistently, becomes big.
Step 9: Keep Learning
Money is a skill.
The more you learn, the better you become… So Fokona should be your best friend.
Most people lose money not because investment is bad, but because they don’t understand what they are doing.
Money is like a worker.
If you don’t give it instructions, it will misbehave.
But if you control it, guide it, and put it to work
it will build your life quietly over time.
Start small
Stay consistent
Think long term
That is how real wealth is built.
See lessWhat is stock liquidity in Nigeria’s stock market and how does it affect ETF investors ?
This is a very intelligent question. And I’m glad you asked it, because this is where many beginners misunderstand how the stock market works. First.... Let Me Answer You Directly Yes, it is possible that you want to sell a stock or ETF and there is no immediate buyer. But… You are not stuck. Your mRead more
This is a very intelligent question.
And I’m glad you asked it, because this is where many beginners misunderstand how the stock market works.
First….
Let Me Answer You Directly
Yes, it is possible that you want to sell a stock or ETF and there is no immediate buyer.
But…
You are not stuck.
Your money is not lost.
You just need to understand liquidity.
Let Me Explain this better With a Simple Story…
Imagine Mama Ngozi goes to the market with tomatoes.
If she is selling in a busy market…
Buyers will rush it.
She can sell immediately.
That is called high liquidity.
But if she carries those same tomatoes to a quiet village corner…
She may sit for hours before seeing a buyer.
That is called low liquidity.
The tomatoes are still valuable.
And The problem is not the tomatoes.
The main problem is availability of buyers at that moment.
Now Back To Your Question (with ETF Example)…
You mentioned:
Stanbic ETF 30
This is an ETF tracking top companies.
But here is the reality:
The Nigerian market is still developing
And Not all ETFs have high daily trading volume
So sometimes:
Buyers may not be immediately available at your price
What Are Your Options?
1: Adjust Your Price (Very Important)
If you are too rigid with your price…
You may not get a buyer.
So… Reduce your price slightly, And You increase your chances of selling faster
2: Be Patient
Liquidity is not always instant.
Sometimes:
You wait for matching buyers
3: Check Market Depth
Please Before buying any stock or ETF:
Always check the volume and demand
Because…
This will tell you:
• how easy it is to enter
• how easy it is to exit
Is There Any Provision From NGX or Brokers?
Yes – indirectly.
There are market makers in some securities.
And Their role is to:
• provide liquidity
• reduce large price gaps
But here is the truth:
They are not always active in all ETFs or stocks
So you cannot rely 100% on them.
So… here’s the Lesson I want you to learn…
Many beginners focus on:
“What should I buy?”
But smart investors also ask:
“How easy is it to sell?”
Before buying any stock or ETF, always check:
• trading volume
• liquidity level
• Free Float
• market activity
Because:
Buying is easy
But… Selling is where experience show.
Liquidity is like traffic in a market.
If the market is busy…
You move fast.
But…
If the market is quiet…
You wait.
The goal is not just to invest…
The goal is to invest wisely and strategically.
I am Iking Ferry
Learn. Invest. Build Wealth.
See lessHow Do I Identify the Best Time to Sell Stocks in the Nigerian Stock Market for Short-Term Profit?
Okay… imagine this like an old grandma sitting outside in the evening, watching people trade tomatoes in the market. She no dey use big grammar. She just dey observe life. She go tell you like this: “My child… nobody truly knows the exact top. If person say he knows… hmm… be careful.” Think of stockRead more
Okay… imagine this like an old grandma sitting outside in the evening, watching people trade tomatoes in the market.
She no dey use big grammar. She just dey observe life.
She go tell you like this:
“My child… nobody truly knows the exact top.
If person say he knows… hmm… be careful.”
Think of stock like price of yam in market
Morning time, price dey go up
People dey rush buy
You go think: “Ah this thing go keep going o”
Then suddenly…
People stop buying
Some start selling
Price begin fall.
So how you go know the “peak”?
You no go know exact peak.
But you fit feel say it don near finish.
Grandma go say, watch these things:
1. When everybody don dey talk about am
If even your friend wey no sabi anything about stock come say:
“Guy this stock dey hot, buy now!”
Hmm…
That time, e don almost reach top.
Because: When everybody don enter… who remain to push am go up again?
2. When price don run too fast
If stock was: ₦10 → ₦15 → ₦25 → ₦40 (very fast)
No rest, no small drop… just flying
Grandma go say: “Anything wey climb too fast… go come down small to breathe”
3. When you see small small weakness
Before big fall comes…
You go first see:
Price go up small
Then drop small
Then struggle
Like person wey don tire but still dey try walk.
That is warning.
4. Have your own exit before you enter
This one important pass all.
Before you buy, tell yourself:
“I go sell when I see 20% profit” or
“I go sell if it drop 10%”
Because if you wait for perfect top…
Greed go hold you.
You go say: “Make it reach ₦50… make it reach ₦60…”
Before you know, it don fall back to ₦30.
Truth (grandma go whisper this one)
“You no need catch the top to make money.”
Even if you sell before peak…
as long as you make profit… you win.
See lessWhat Is Earnings Per Share (EPS) in Simple Terms for Beginners in Nigeria?
Earnings Per Share (EPS) shows how much profit a company makes for each outstanding common share. It's calculated by dividing Company's profit by Total number of shares. It can be likely to a report card for a company. It tells you how much profit the company made for each share you own.
Earnings Per Share (EPS) shows how much profit a company makes for each outstanding common share. It’s calculated by dividing Company’s profit by Total number of shares.
It can be likely to a report card for a company. It tells you how much profit the company made for each share you own.
See less