Imagine you want to buy tomatoes from Mama Ngozi in the village. Buying shares is like purchasing a basket of tomatoes from Mama Ngozi. Each share represents a small portion of ownership in a company. When you buy shares, you become a part-owner of that company, just like buying a basket of tomatoesRead more
Imagine you want to buy tomatoes from Mama Ngozi in the village. Buying shares is like purchasing a basket of tomatoes from Mama Ngozi. Each share represents a small portion of ownership in a company. When you buy shares, you become a part-owner of that company, just like buying a basket of tomatoes makes you the owner of those tomatoes.
Investing in stocks brings an extra twist. It’s like deciding to sell the tomatoes you bought from Mama Ngozi to your neighbors. When you invest in stocks, you are buying and selling shares of different companies in the stock market, aiming to make a profit. It’s like trading your tomatoes to earn some money.
Buying shares is like owning a part of a company, while investing in stocks involves actively trading those ownership parts in the market to potentially make a profit. Both activities can help you grow your money, but investing in stocks requires more active participation and decision-making. Just like Mama Ngozi carefully selects her best tomatoes to attract buyers, investing in stocks involves choosing the right companies to invest in based on their potential for growth and profitability.
So, buying shares is like owning tomatoes from Mama Ngozi’s stall, while investing in stocks is like trading those tomatoes in the village market to make a profit. Both activities have their similarities and differences, but ultimately, they can be avenues to grow your wealth if done wisely.
To buy shares in a bank in Nigeria, you need three things: A CSCS account (for electronic share ownership). A CHN (Clearing House Number). Access to a stockbroker or an investment platform connected to the stock market. How do banks pay dividends on shares? There is no fixed rule that all banks follRead more
To buy shares in a bank in Nigeria, you need three things:
A CSCS account (for electronic share ownership).
A CHN (Clearing House Number).
Access to a stockbroker or an investment platform connected to the stock market.
How do banks pay dividends on shares?
There is no fixed rule that all banks follow.
Most Nigerian banks pay dividends:
Once a year (final dividend) after their annual results.
Some banks also pay an interim dividend during the year, making it effectively twice a year.
For example, banks such as GTCO, Zenith Bank, and UBA often pay an interim dividend and a final dividend, but the amount and timing depend on profits and board approval.
Can I buy shares without a stockbroker?
Traditionally, no. All share purchases on the Nigerian Exchange pass through licensed stockbrokers.
However, today you can buy shares yourself through digital investment platforms that are connected to stockbrokers. Examples include:
investbamboo.com
investnaija.com
troveapp.co
You place the order yourself on the app, but the transaction is still executed through a licensed broker behind the scenes.
Example
If you want to buy ₦50,000 worth of Access Holdings shares:
Fund your investment account.
Search for Access Holdings.
Enter the amount or number of shares.
Submit your buy order.
Once executed, the shares are credited to your CSCS account.
How Does Buying Shares Work in the Nigerian Stock Market?
Imagine you want to buy tomatoes from Mama Ngozi in the village. Buying shares is like purchasing a basket of tomatoes from Mama Ngozi. Each share represents a small portion of ownership in a company. When you buy shares, you become a part-owner of that company, just like buying a basket of tomatoesRead more
Imagine you want to buy tomatoes from Mama Ngozi in the village. Buying shares is like purchasing a basket of tomatoes from Mama Ngozi. Each share represents a small portion of ownership in a company. When you buy shares, you become a part-owner of that company, just like buying a basket of tomatoes makes you the owner of those tomatoes.
Investing in stocks brings an extra twist. It’s like deciding to sell the tomatoes you bought from Mama Ngozi to your neighbors. When you invest in stocks, you are buying and selling shares of different companies in the stock market, aiming to make a profit. It’s like trading your tomatoes to earn some money.
Buying shares is like owning a part of a company, while investing in stocks involves actively trading those ownership parts in the market to potentially make a profit. Both activities can help you grow your money, but investing in stocks requires more active participation and decision-making. Just like Mama Ngozi carefully selects her best tomatoes to attract buyers, investing in stocks involves choosing the right companies to invest in based on their potential for growth and profitability.
So, buying shares is like owning tomatoes from Mama Ngozi’s stall, while investing in stocks is like trading those tomatoes in the village market to make a profit. Both activities have their similarities and differences, but ultimately, they can be avenues to grow your wealth if done wisely.
See lessHow Can I Buy Shares in Nigerian Banks and Other Companies?
To buy shares in a bank in Nigeria, you need three things: A CSCS account (for electronic share ownership). A CHN (Clearing House Number). Access to a stockbroker or an investment platform connected to the stock market. How do banks pay dividends on shares? There is no fixed rule that all banks follRead more
To buy shares in a bank in Nigeria, you need three things:
See lessA CSCS account (for electronic share ownership).
A CHN (Clearing House Number).
Access to a stockbroker or an investment platform connected to the stock market.
How do banks pay dividends on shares?
There is no fixed rule that all banks follow.
Most Nigerian banks pay dividends:
Once a year (final dividend) after their annual results.
Some banks also pay an interim dividend during the year, making it effectively twice a year.
For example, banks such as GTCO, Zenith Bank, and UBA often pay an interim dividend and a final dividend, but the amount and timing depend on profits and board approval.
Can I buy shares without a stockbroker?
Traditionally, no. All share purchases on the Nigerian Exchange pass through licensed stockbrokers.
However, today you can buy shares yourself through digital investment platforms that are connected to stockbrokers. Examples include:
investbamboo.com
investnaija.com
troveapp.co
You place the order yourself on the app, but the transaction is still executed through a licensed broker behind the scenes.
Example
If you want to buy ₦50,000 worth of Access Holdings shares:
Fund your investment account.
Search for Access Holdings.
Enter the amount or number of shares.
Submit your buy order.
Once executed, the shares are credited to your CSCS account.