Stocks and Shares are used interchangeably. Key Differences: * Stock is a general term for ownership (e.g., "I own MTN stock"). * Shares are the specific units (numbers) you own (e.g., "I own 10 shares of MTN"). * Measurement: Shares are used to count ownership in a specific, single company. Stock rRead more
Stocks and Shares are used interchangeably.
Key Differences:
* Stock is a general term for ownership (e.g., “I own MTN stock”).
* Shares are the specific units (numbers) you own (e.g., “I own 10 shares of MTN”).
* Measurement: Shares are used to count ownership in a specific, single company. Stock refers to the overall investment in a company or portfolio.
* Stock can represent ownership in multiple companies. Example: I own MTN, Zenith Bank and Dangote Cement stocks.
* Shares always represent a stake in one specific company. Example: I own 50 units of Zenith Bank shares.
Usage: You buy “shares” of a company, but you own “stock” in a company.
Before putting money into any company, you’re essentially answering one question: “Is this business strong, profitable, and likely to still exist (and grow) in the future?” To do that properly, you need to evaluate a few core pillars—not just price or hype. 🔑 1. Financial Health (Non-negotiable) ThiRead more
Before putting money into any company, you’re essentially answering one question:
“Is this business strong, profitable, and likely to still exist (and grow) in the future?”
To do that properly, you need to evaluate a few core pillars—not just price or hype.
🔑 1. Financial Health (Non-negotiable)
This is the backbone of your analysis.
What to check:
Revenue growth → Is the company increasing sales consistently?
Profitability → Net profit, profit margins
Earnings Per Share (EPS) → Are earnings growing?
Debt level → Too much debt = high risk
👉 Example:
A bank like Zenith Bank Plc is attractive because of consistent profits and strong balance sheet.
📊 2. Dividend History (Income Signal)
If you want passive income, this is critical.
Look for:
Consistent dividend payments (5–10 years track record)
Increasing dividend over time
Sustainable payout ratio (not paying more than they earn)
👉 Example:
Guaranty Trust Holding Company Plc is known for steady dividends.
Here’s a structured guide for a beginner wanting to invest in the stock market, with practical steps and key considerations: 1. Understand What Stock Market Investing Is Investing in the stock market means buying shares (ownership stakes) in publicly listed companies. When the company grows and becoRead more
Here’s a structured guide for a beginner wanting to invest in the stock market, with practical steps and key considerations:
1. Understand What Stock Market Investing Is
Investing in the stock market means buying shares (ownership stakes) in publicly listed companies. When the company grows and becomes more valuable, your shares can increase in price. Additionally, some companies pay dividends—a share of profits—to shareholders.
Key concepts:
Shares/Stocks: Units of ownership in a company.
Dividends: Cash payments to shareholders.
Market capitalization: Total value of a company’s shares.
Risk vs. Reward: Higher potential returns usually come with higher risk.
2. Learn the Basics First
Before investing, familiarize yourself with:
Types of Stocks:
Blue-chip stocks: Large, stable, often pay dividends (e.g., Zenith Bank, Dangote Cement).
Growth stocks: Companies expected to grow faster than the market.
Value stocks: Stocks undervalued compared to fundamentals.
Stock Market Indicators:
52-week high/low: Highest and lowest price in the last year.
If you want to avoid losing money as a beginner, never start by asking “which stock is hot”… start by asking “which business do I understand” Let me explain: As a beginner, the best stocks to buy first are not random or trending stocks. You should start with strong, stable companies that people useRead more
If you want to avoid losing money as a beginner, never start by asking “which stock is hot”… start by asking “which business do I understand”
Let me explain:
As a beginner, the best stocks to buy first are not random or trending stocks. You should start with strong, stable companies that people use every day. These are called blue chip stocks, and they are known for steady performance and lower risk compared to small companies
In Nigeria, examples of beginner friendly stocks include companies like Dangote Cement, MTN Nigeria, Zenith Bank, GTCO, and Nestle Nigeria because they have strong businesses and consistent performance
Now… let me make it very simple in a way that even Mama Ngozi will understand.
Imagine Mama Ngozi wants to invest her money. Instead of putting her money into a new tomato seller she does not know, she partners with a big trader in the market who already has customers, steady sales, and experience.
That is how beginners should invest
Do not chase cheap stocks
Do not follow social media hype
Start with businesses you understand
Here is the secret many people don’t tell you
There is no perfect first stock
YES.. The real goal is to learn how to invest, not just to make quick profit
A smart beginner should Start with one or two strong companies, Invest small money first
Watch how the market behaves
Learn before increasing your money
The best stock for a beginner is not the one that will rise fastest
It is the one you understand, can hold with confidence, and will not panic when the price goes up and down
Knowledge first, profit later
That is how real investors win without running away from the market.
And that’s why Fokona is here to simplify this better in Mama Ngozi Language.
The stock market is simply a place where people buy and sell shares of companies. When you buy a stock, you’re buying a small ownership part of a business, and as the company grows and makes profit, your investment can grow too either through price increase or dividends. In short, it’s a marketplaceRead more
The stock market is simply a place where people buy and sell shares of companies.
When you buy a stock, you’re buying a small ownership part of a business, and as the company grows and makes profit, your investment can grow too either through price increase or dividends.
In short, it’s a marketplace where companies raise money and investors build wealth over time.
First… Your business is your primary source of wealth. Stocks are your support system. So your strategy must: • protect your time • grow your money • not distract your business Let Me Explain With a Simple Story Imagine Alhaji Musa owns a successful rice shop. Every day, he is busy: • buying goods •Read more
First…
Your business is your primary source of wealth.
Stocks are your support system.
So your strategy must:
• protect your time
• grow your money
• not distract your business
Let Me Explain With a Simple Story
Imagine Alhaji Musa owns a successful rice shop.
Every day, he is busy:
• buying goods
• attending to customers
• managing staff
Now if he leaves his shop to go and start chasing rice prices in another market every hour…
What will happen?
His main business will suffer.
That is exactly what happens when business people try to trade stocks actively.
Oya… Here Is the Best Strategy for a Business Person
1. Use the “Set and Grow” Strategy
As a business person, your best approach is:
👉 Long-term investing, not daily trading
Meaning:
• you buy strong companies
• you hold them
• you allow them grow over time
2. Invest From Your Profits — Not Your Capital
This one is very important.
Do NOT take money meant for:
• rent
• stock purchase
• staff salaries
to invest in shares.
Instead:
👉 invest a portion of your business PROFITS
For example:
• 10%–20% of monthly profit
3. Focus on Strong, Established Companies
As a business person, you don’t have time to gamble.
So focus on:
• stable companies
• consistent dividend payers
• companies with long track record
These are often called blue-chip stocks.
4. Think Like a Business Owner — Not a Gambler
Before buying any stock, ask:
• Does this company make steady income?
• Is demand for their product consistent?
• Will this business still exist in 10 years?
First… Share price is not controlled by one thing. It is controlled by expectation about the future. Not just what is happening now. Let Me Explain With a Simple Story Imagine Baba Musa owns a yam farm. Today, his farm is doing well. But suddenly people hear that: • next year there may be drought •Read more
First…
Share price is not controlled by one thing.
It is controlled by expectation about the future.
Not just what is happening now.
Let Me Explain With a Simple Story
Imagine Baba Musa owns a yam farm.
Today, his farm is doing well.
But suddenly people hear that:
• next year there may be drought
• or fertilizer price will rise
• or government may ban export
Even if his farm is still producing well today…
People may start offering lower prices for his farm.
Why?
Because they are thinking about the future.
That is exactly how the stock market works.
Oya… Let’s Break Down the Real Factors
Apart from buying/selling and profit/loss, here are the major forces:
1. Future Expectations (VERY POWERFUL)
This is the biggest driver.
If investors believe:
• the company will grow
• expand
• increase revenue
Price goes up.
Even if current profit is small.
If they believe future will be bad…
Price falls — even if current profit is good.
2. Interest Rates (Central Bank Decisions)
When interest rates rise:
• borrowing becomes expensive
• businesses may slow down
• investors move money to safer assets
First… You don’t need millions to start investing. You don’t need to be an expert. What you need is: • the right knowledge • the right platform • the right mindset Let Me Explain With a Simple Story Imagine Mama Ngozi wants to start selling rice. She does NOT need to own a warehouse. She starts smalRead more
First…
You don’t need millions to start investing.
You don’t need to be an expert.
What you need is:
• the right knowledge
• the right platform
• the right mindset
Let Me Explain With a Simple Story
Imagine Mama Ngozi wants to start selling rice.
She does NOT need to own a warehouse.
She starts small:
• learns where to buy
• understands good vs bad rice
• buys small quantity
• sells and grows gradually
That is exactly how you should approach investing.
Oya… Let’s Start Step-by-Step
STEP 1: Understand What You Are Buying
Before putting money anywhere, understand this:
A stock = ownership in a company
When you buy shares, you are becoming a part-owner of that business.
For example:
If you buy shares in:
• a bank
• a telecom company
• a manufacturing company
You are owning a small piece of it.
STEP 2: Decide Where You Want to Invest
As a beginner in Nigeria, you have two main options:
Option A: Nigerian Stock Market
You invest in companies listed on the Nigerian Exchange.
Angela Olofua I help serious business owners and entrepreneurs register their business name and company (LTD) with the Corporate Affairs Commission (CAC).
I don’t know what a blue chip stock is but from my ongoing explanation, we can arrive at a logical conclusion of what it is. MTN is arguably the most profitable, strongest and used network in Nigeria. They have the largest number of subscribers. And Zenith bank is a strong commercial bank with lotsRead more
I don’t know what a blue chip stock is but from my ongoing explanation, we can arrive at a logical conclusion of what it is.
MTN is arguably the most profitable, strongest and used network in Nigeria. They have the largest number of subscribers. And Zenith bank is a strong commercial bank with lots of existing and growing customers. Both of them have the numbers and great cash flow.
If MTN and Zenith bank are strong examples of offering blue chip stock, that literally means they have the capacity to pay out dividends to their shareholders without much risk. They have a good track record of paying out dividends and many people would naturally want to key into that.
These are my 2 scents.
First… Yes — it is possible to have two CSCS numbers. And it does NOT mean anything is wrong. It simply means the shares were bought at different times through different channels. Let Me Explain Using a Simple Story ( Just Like Iking Ferry😌😁) Imagine you opened a bank account in 2014 at one branch.Read more
First…
Yes — it is possible to have two CSCS numbers.
And it does NOT mean anything is wrong.
It simply means the shares were bought at different times through different channels.
Let Me Explain Using a Simple Story ( Just Like Iking Ferry😌😁)
Imagine you opened a bank account in 2014 at one branch.
Then in 2024 you opened another account using a mobile banking app.
Does that mean the first account disappeared?
No.
You now just have two accounts in the same banking system.
That is exactly what is happening here.
Now Let’s Understand What Really Happened
1. The IPO You Bought 10 Years Ago
When you bought those bank shares through IPO:
• Your name was registered with the company registrar
• A CSCS number was created for you (even if you never saw it)
• Dividends were sent directly to you
So yes… you already had a CSCS account long ago.
2. The New Shares You Bought Through Bamboo
When you used Bamboo:
• The platform created a new trading account for you
• A new CSCS number may have been generated
• You were also given something called an NCH number
Now here is the key thing to understand.
What Is the Difference?
CSCS Number
This is where your Nigerian shares are stored.
Think of it as a vault that keeps your shares safe.
NCH Number
This is simply a trading account number created by the broker/app you are using.
It is not the same as CSCS.
It is just the ID the broker uses to manage your trades.
So How Do You Know If You Truly Have Two CSCS Numbers?
Very simple.
You just need to confirm using one of these methods:
Option 1: Contact a Stockbroker
Give them:
• Your full name
• Phone number
• Bank details used for dividend
They can search the CSCS system and confirm if more than one account exists under your name.
Option 2: Request a CSCS Statement
Ask for:
“Full CSCS account search under my name.”
If there are two accounts, it will show.
Option 3: Check Your Old Dividend Messages
Sometimes the CSCS number is hidden inside:
• old dividend alerts
• registrar messages
• e-dividend registration forms
Important Advice (Don’t Ignore This Part)
If you truly have two CSCS accounts,
you should merge them.
Why?
Because leaving them separate can cause:
• missing dividends
• confusion during share sales
• problems when transferring shares later
Let Me Be Honest With You
This is not a big problem.
Thousands of Nigerians who bought shares during:
• bank recapitalization period
• old IPO era
• public share offers
now have more than one CSCS account.
The good news?
It can be corrected easily once you verify it.
Final Truth
The issue is not that you made a mistake.
The issue is simply that the system has changed over the years — from paper shares to digital trading apps.
So don’t panic.
Just confirm:
• Do I truly have two CSCS numbers?
• Which one is holding my old shares?
• Which one is holding the new shares?
Once you answer those three questions, everything becomes clear.
What Is the Difference Between Stocks and Shares in Investing?
Stocks and Shares are used interchangeably. Key Differences: * Stock is a general term for ownership (e.g., "I own MTN stock"). * Shares are the specific units (numbers) you own (e.g., "I own 10 shares of MTN"). * Measurement: Shares are used to count ownership in a specific, single company. Stock rRead more
Stocks and Shares are used interchangeably.
Key Differences:
* Stock is a general term for ownership (e.g., “I own MTN stock”).
* Shares are the specific units (numbers) you own (e.g., “I own 10 shares of MTN”).
* Measurement: Shares are used to count ownership in a specific, single company. Stock refers to the overall investment in a company or portfolio.
* Stock can represent ownership in multiple companies. Example: I own MTN, Zenith Bank and Dangote Cement stocks.
* Shares always represent a stake in one specific company. Example: I own 50 units of Zenith Bank shares.
Usage: You buy “shares” of a company, but you own “stock” in a company.
See lessWhat Should You Look For Before Investing in a Company’s Stock?
Before putting money into any company, you’re essentially answering one question: “Is this business strong, profitable, and likely to still exist (and grow) in the future?” To do that properly, you need to evaluate a few core pillars—not just price or hype. 🔑 1. Financial Health (Non-negotiable) ThiRead more
Before putting money into any company, you’re essentially answering one question:
“Is this business strong, profitable, and likely to still exist (and grow) in the future?”
To do that properly, you need to evaluate a few core pillars—not just price or hype.
🔑 1. Financial Health (Non-negotiable)
This is the backbone of your analysis.
What to check:
Revenue growth → Is the company increasing sales consistently?
Profitability → Net profit, profit margins
Earnings Per Share (EPS) → Are earnings growing?
Debt level → Too much debt = high risk
👉 Example:
A bank like Zenith Bank Plc is attractive because of consistent profits and strong balance sheet.
📊 2. Dividend History (Income Signal)
If you want passive income, this is critical.
Look for:
Consistent dividend payments (5–10 years track record)
Increasing dividend over time
Sustainable payout ratio (not paying more than they earn)
👉 Example:
Guaranty Trust Holding Company Plc is known for steady dividends.
📈 3. Business Model & Industry Position
You must understand how the company makes money.
Ask:
Is the business easy to understand?
Does it solve a real problem?
Does it have a competitive advantage?
👉 Example:
Dangote Cement Plc dominates cement in Nigeria → strong market power.
🧠 4. Management Quality
A company is only as good as the people running it.
Check:
Track record of leadership
Transparency (clear reports, communication)
No history of fraud or scandals
Bad management can destroy even a good business.
⚖️ 5. Valuation (Don’t Overpay)
A great company can still be a bad investment if overpriced.
Key metrics:
P/E Ratio (Price to Earnings)
Compare with industry average
Check if price is justified by growth
📉 6. Risk Factors
Always read the “what can go wrong” side.
Look for:
Regulatory risks (especially in Nigeria)
Currency risk (naira depreciation)
Industry competition
Economic sensitivity
🌍 7. Macroeconomic Fit
Some businesses perform better depending on the economy.
Banks → benefit from high interest rates
Consumer goods → suffer during inflation
Oil & gas → depend on global oil prices
🧾 8. Share Price Behavior (Basic Technical Insight)
Even if you’re a long-term investor:
Avoid buying at extreme highs
Look at:
52-week high/low
Price trends
Volume activity
🧩 Putting It All Together (Simple Framework)
Before investing, ask:
Is the company profitable and growing?
Is the business strong and understandable?
Is management trustworthy?
Is the price reasonable?
What are the risks?
If you can confidently answer these → you’re investing, not gambling.
⚠️ Common Mistake to Avoid
Most beginners:
Buy based on tips or hype
Ignore financials
Chase “cheap” stocks
Cheap doesn’t mean undervalued—it can mean weak company.
🎯 Straight Guidance for You
Given your interest in Nigerian stocks:
Start by analyzing companies like:
Zenith Bank Plc
Guaranty Trust Holding Company Plc
Dangote Cement Plc
They are:
Established
Transparent
Easier to study
See lessHow Can a Beginner Start Investing in the Stock Market and What Should I Know Before Getting Started?
Here’s a structured guide for a beginner wanting to invest in the stock market, with practical steps and key considerations: 1. Understand What Stock Market Investing Is Investing in the stock market means buying shares (ownership stakes) in publicly listed companies. When the company grows and becoRead more
Here’s a structured guide for a beginner wanting to invest in the stock market, with practical steps and key considerations:
1. Understand What Stock Market Investing Is
Investing in the stock market means buying shares (ownership stakes) in publicly listed companies. When the company grows and becomes more valuable, your shares can increase in price. Additionally, some companies pay dividends—a share of profits—to shareholders.
Key concepts:
Shares/Stocks: Units of ownership in a company.
Dividends: Cash payments to shareholders.
Market capitalization: Total value of a company’s shares.
Risk vs. Reward: Higher potential returns usually come with higher risk.
2. Learn the Basics First
Before investing, familiarize yourself with:
Types of Stocks:
Blue-chip stocks: Large, stable, often pay dividends (e.g., Zenith Bank, Dangote Cement).
Growth stocks: Companies expected to grow faster than the market.
Value stocks: Stocks undervalued compared to fundamentals.
Stock Market Indicators:
52-week high/low: Highest and lowest price in the last year.
Price-to-Earnings (P/E) ratio: Measures company’s valuation.
Dividend yield: Annual dividend ÷ current stock price.
Investment Strategy:
Long-term buy-and-hold: Hold stocks for years to benefit from growth.
Short-term trading: Buy and sell frequently to profit from price swings (riskier).
3. Steps to Start Investing
Set Clear Goals:
Decide why you’re investing (e.g., retirement, wealth building, education).
Build an Emergency Fund:
Keep 3–6 months of expenses in a savings account before investing.
Open a Stock Trading Account:
In Nigeria, you need a CSCS account through a broker.
Choose a licensed broker like Meristem Securities, Chapel Hill Denham, or Stanbic IBTC.
Start Small:
Begin with amounts you can afford to lose. Many beginners start with ₦50,000–₦200,000.
Research Before Buying:
Check the company’s:
Financial performance (profit, debt)
Dividend history
Industry trends
Regulatory risks
Diversify Your Portfolio:
Don’t put all your money in one stock. Spread across sectors like banking, consumer goods, and technology.
Monitor Your Investments:
Track stock performance but avoid overreacting to short-term fluctuations.
4. Key Risks to Know
Market risk: Stock prices fluctuate.
Liquidity risk: Some stocks may be hard to sell quickly.
Company risk: Poor management or losses can reduce stock value.
Economic risk: Inflation, interest rates, and policies can affect the market.
5. Tips for Beginners
Focus on blue-chip and dividend-paying stocks first.
Consider ETFs or mutual funds for easier diversification.
Reinvest dividends to grow wealth faster.
Avoid “hot tips” or stocks you don’t understand.
Think long-term—compounding works best over years.
See lessWhich Stocks Should a Beginner Buy First When Starting to Invest?
If you want to avoid losing money as a beginner, never start by asking “which stock is hot”… start by asking “which business do I understand” Let me explain: As a beginner, the best stocks to buy first are not random or trending stocks. You should start with strong, stable companies that people useRead more
If you want to avoid losing money as a beginner, never start by asking “which stock is hot”… start by asking “which business do I understand”
Let me explain:
As a beginner, the best stocks to buy first are not random or trending stocks. You should start with strong, stable companies that people use every day. These are called blue chip stocks, and they are known for steady performance and lower risk compared to small companies
In Nigeria, examples of beginner friendly stocks include companies like Dangote Cement, MTN Nigeria, Zenith Bank, GTCO, and Nestle Nigeria because they have strong businesses and consistent performance
Now… let me make it very simple in a way that even Mama Ngozi will understand.
Imagine Mama Ngozi wants to invest her money. Instead of putting her money into a new tomato seller she does not know, she partners with a big trader in the market who already has customers, steady sales, and experience.
That is how beginners should invest
Do not chase cheap stocks
Do not follow social media hype
Start with businesses you understand
Here is the secret many people don’t tell you
There is no perfect first stock
YES.. The real goal is to learn how to invest, not just to make quick profit
A smart beginner should Start with one or two strong companies, Invest small money first
Watch how the market behaves
Learn before increasing your money
The best stock for a beginner is not the one that will rise fastest
It is the one you understand, can hold with confidence, and will not panic when the price goes up and down
Knowledge first, profit later
That is how real investors win without running away from the market.
And that’s why Fokona is here to simplify this better in Mama Ngozi Language.
See lessWHAT IS STOCK MARKET?
The stock market is simply a place where people buy and sell shares of companies. When you buy a stock, you’re buying a small ownership part of a business, and as the company grows and makes profit, your investment can grow too either through price increase or dividends. In short, it’s a marketplaceRead more
The stock market is simply a place where people buy and sell shares of companies.
When you buy a stock, you’re buying a small ownership part of a business, and as the company grows and makes profit, your investment can grow too either through price increase or dividends.
In short, it’s a marketplace where companies raise money and investors build wealth over time.
See lessWhat is the Best Strategy to Invest in the Nigeria STOCK Market as a Business Man?
First… Your business is your primary source of wealth. Stocks are your support system. So your strategy must: • protect your time • grow your money • not distract your business Let Me Explain With a Simple Story Imagine Alhaji Musa owns a successful rice shop. Every day, he is busy: • buying goods •Read more
First…
Your business is your primary source of wealth.
Stocks are your support system.
So your strategy must:
• protect your time
• grow your money
• not distract your business
Let Me Explain With a Simple Story
Imagine Alhaji Musa owns a successful rice shop.
Every day, he is busy:
• buying goods
• attending to customers
• managing staff
Now if he leaves his shop to go and start chasing rice prices in another market every hour…
What will happen?
His main business will suffer.
That is exactly what happens when business people try to trade stocks actively.
Oya… Here Is the Best Strategy for a Business Person
1. Use the “Set and Grow” Strategy
As a business person, your best approach is:
👉 Long-term investing, not daily trading
Meaning:
• you buy strong companies
• you hold them
• you allow them grow over time
2. Invest From Your Profits — Not Your Capital
This one is very important.
Do NOT take money meant for:
• rent
• stock purchase
• staff salaries
to invest in shares.
Instead:
👉 invest a portion of your business PROFITS
For example:
• 10%–20% of monthly profit
3. Focus on Strong, Established Companies
As a business person, you don’t have time to gamble.
So focus on:
• stable companies
• consistent dividend payers
• companies with long track record
These are often called blue-chip stocks.
4. Think Like a Business Owner — Not a Gambler
Before buying any stock, ask:
• Does this company make steady income?
• Is demand for their product consistent?
• Will this business still exist in 10 years?
If the answer is no…
Don’t invest.
5. Reinvest Your Dividends
When you receive dividends:
Don’t spend everything.
👉 Reinvest it.
This is how compounding works in your favor.
6. Diversify (Don’t Put Everything in One Place)
Spread your money across:
• banking sector
• consumer goods
• industrial companies
So if one sector is down…
others can support your portfolio.
7. Avoid Frequent Buying and Selling
Let me be honest with you.
Frequent trading will:
• waste your time
• increase transaction costs
• expose you to emotional decisions
As a business person…
👉 less activity = better results
8. Use Professionals When Needed
If you are too busy:
• use a stockbroker
• invest through equity funds
Let professionals manage part of your portfolio.
9. Review — But Don’t Obsess
You don’t need to check your portfolio every day.
Instead:
• review quarterly
• review yearly
Focus on your business daily.
Let Me Be Honest With You
The biggest mistake business people make is this:
They try to turn the stock market into another full-time hustle.
That is dangerous.
Because:
• it divides attention
• it increases stress
• it leads to poor decisions
Final Truth
The stock market should:
👉 support your business wealth
👉 not compete with your business
Let Me Leave You With This
If you run a business successfully, you already understand:
• patience
• reinvestment
• long-term thinking
That same mindset…
is what makes you successful in the stock market.
So ask yourself:
• Am I investing like a disciplined business owner… or a gambler?
• Is my strategy protecting my time… or stealing it?
Because real wealth is built when:
👉 your business works
👉 AND your investments grow quietly in the background
I am Rose Ejituru
See lessWhy Do Share Prices Change Apart From Company Profit or Loss in the Stock Market?
First… Share price is not controlled by one thing. It is controlled by expectation about the future. Not just what is happening now. Let Me Explain With a Simple Story Imagine Baba Musa owns a yam farm. Today, his farm is doing well. But suddenly people hear that: • next year there may be drought •Read more
First…
Share price is not controlled by one thing.
It is controlled by expectation about the future.
Not just what is happening now.
Let Me Explain With a Simple Story
Imagine Baba Musa owns a yam farm.
Today, his farm is doing well.
But suddenly people hear that:
• next year there may be drought
• or fertilizer price will rise
• or government may ban export
Even if his farm is still producing well today…
People may start offering lower prices for his farm.
Why?
Because they are thinking about the future.
That is exactly how the stock market works.
Oya… Let’s Break Down the Real Factors
Apart from buying/selling and profit/loss, here are the major forces:
1. Future Expectations (VERY POWERFUL)
This is the biggest driver.
If investors believe:
• the company will grow
• expand
• increase revenue
Price goes up.
Even if current profit is small.
If they believe future will be bad…
Price falls — even if current profit is good.
2. Interest Rates (Central Bank Decisions)
When interest rates rise:
• borrowing becomes expensive
• businesses may slow down
• investors move money to safer assets
So stock prices may fall.
When rates fall:
• businesses grow easier
• investors prefer stocks
Prices may rise.
3. Inflation
If inflation is high:
• cost of production increases
• consumers buy less
• company profit may reduce
So investors adjust prices downward.
4. Government Policies & Regulations
New policies can change everything overnight.
Examples:
• new taxes
• import bans
• subsidies removal
• banking regulations
A single government decision can move share prices sharply.
5. Industry Performance
Sometimes it’s not the company…
It’s the entire sector.
For example:
• if oil prices crash → oil companies fall
• if banking rules change → bank stocks move
So even a good company can fall because its industry is struggling.
6. Company News (Beyond Profit)
Things like:
• new CEO appointment
• scandals or fraud
• expansion into new markets
• mergers and acquisitions
All these affect investor confidence.
7. Dividends
If a company:
• increases dividend → price may rise
• cuts dividend → price may fall
Because investors love consistent income.
8. Global Events
Even if a company is in Nigeria…
Global issues can affect it:
• war
• oil price changes
• foreign exchange rates
• global recession
Everything is connected.
9. Market Sentiment (Human Emotions)
This one is powerful and dangerous.
Sometimes prices move because of:
• fear
• greed
• rumors
• hype
Not logic.
That’s why markets sometimes:
• rise too fast
• fall too hard
10. Liquidity (How Easy It Is to Buy/Sell)
If a stock is:
• actively traded → price moves smoothly
• rarely traded → price can jump suddenly
Let Me Be Honest With You
Even experts cannot predict price movements perfectly.
Because:
The market is a mix of logic and human emotion.
Final Truth
Profit and loss tell you about the present.
But share price reflects:
👉 what people BELIEVE about the future.
Let Me Leave You With This
Many beginners ask:
“Why did the price fall? The company made profit.”
But the real question is:
“What did investors EXPECT… and what actually happened?”
Because once you understand that…
You stop being confused.
And you start thinking like a real investor.
I am Rose Ejituru
See lessHow do I start investing in the Nigerian stock market as a complete beginner?
First… You don’t need millions to start investing. You don’t need to be an expert. What you need is: • the right knowledge • the right platform • the right mindset Let Me Explain With a Simple Story Imagine Mama Ngozi wants to start selling rice. She does NOT need to own a warehouse. She starts smalRead more
First…
You don’t need millions to start investing.
You don’t need to be an expert.
What you need is:
• the right knowledge
• the right platform
• the right mindset
Let Me Explain With a Simple Story
Imagine Mama Ngozi wants to start selling rice.
She does NOT need to own a warehouse.
She starts small:
• learns where to buy
• understands good vs bad rice
• buys small quantity
• sells and grows gradually
That is exactly how you should approach investing.
Oya… Let’s Start Step-by-Step
STEP 1: Understand What You Are Buying
Before putting money anywhere, understand this:
A stock = ownership in a company
When you buy shares, you are becoming a part-owner of that business.
For example:
If you buy shares in:
• a bank
• a telecom company
• a manufacturing company
You are owning a small piece of it.
STEP 2: Decide Where You Want to Invest
As a beginner in Nigeria, you have two main options:
Option A: Nigerian Stock Market
You invest in companies listed on the Nigerian Exchange.
Examples include:
• banks
• cement companies
• telecom-related firms
To do this, you need:
• a stockbroker
• a CSCS account
Option B: Foreign Stocks (via apps)
Platforms allow you invest in companies like:
• Apple
• Tesla
• Amazon
• Microsoft
These are usually accessed through apps.
Important Truth
There is no “best” option.
The best option is the one you understand.
STEP 3: Choose a Platform
This is where many beginners get stuck.
In Nigeria, you can start through:
For Nigerian stocks:
• Licensed stockbrokers (very important)
For foreign stocks:
• Investment apps
Always make sure:
• the platform is legitimate
• it is properly regulated
STEP 4: Open Your Account
You will be asked for:
• BVN
• valid ID
• bank details
• passport photo
Once verified, your account will be ready.
STEP 5: Start Small (VERY IMPORTANT)
Do NOT rush to invest big money.
Start with something like:
• ₦5,000
• ₦10,000
Why?
Because you are still learning.
STEP 6: Don’t Buy Randomly
This is where many beginners lose money.
Before buying any stock, ask:
• What does this company do?
• Does it make profit?
• Is it stable over time?
If you don’t understand it…
Don’t buy it.
STEP 7: Consider Equity Funds (Beginner Friendly)
If picking stocks feels confusing…
You can invest in equity funds.
This means:
• professionals manage the investment
• your money is spread across many companies
This reduces risk for beginners.
STEP 8: Be Patient (This Is Where Wealth Comes From)
Stock investing is NOT:
• betting
• gambling
• quick money
It is:
• long-term growth
• consistency
• discipline
Let Me Be Honest With You
Your first investment may:
• go up
• go down
That is normal.
Do not panic.
Even experienced investors see losses sometimes.
Golden Rules You Must Never Forget
Final Truth
Starting is the hardest part.
But once you take that first step…
Everything becomes easier.
Let Me Leave You With This
Many people spend years saying:
“I want to invest.”
But they never start.
Not because they don’t have money…
But because they are waiting to “fully understand everything.”
That day never comes.
So ask yourself:
• What is stopping me from starting small today?
• What will my future self say if I delay 5 more years?
Because in investing…
action beats perfection.
I am Rose Ejituru
See lessWhat Is a Blue Chip Stock and Why Are MTN and Zenith Bank Good Examples in Nigeria?
I don’t know what a blue chip stock is but from my ongoing explanation, we can arrive at a logical conclusion of what it is. MTN is arguably the most profitable, strongest and used network in Nigeria. They have the largest number of subscribers. And Zenith bank is a strong commercial bank with lotsRead more
I don’t know what a blue chip stock is but from my ongoing explanation, we can arrive at a logical conclusion of what it is.
MTN is arguably the most profitable, strongest and used network in Nigeria. They have the largest number of subscribers. And Zenith bank is a strong commercial bank with lots of existing and growing customers. Both of them have the numbers and great cash flow.
If MTN and Zenith bank are strong examples of offering blue chip stock, that literally means they have the capacity to pay out dividends to their shareholders without much risk. They have a good track record of paying out dividends and many people would naturally want to key into that.
See lessThese are my 2 scents.
How do I know if I have two CSCS number?
First… Yes — it is possible to have two CSCS numbers. And it does NOT mean anything is wrong. It simply means the shares were bought at different times through different channels. Let Me Explain Using a Simple Story ( Just Like Iking Ferry😌😁) Imagine you opened a bank account in 2014 at one branch.Read more
First…
Yes — it is possible to have two CSCS numbers.
And it does NOT mean anything is wrong.
It simply means the shares were bought at different times through different channels.
Let Me Explain Using a Simple Story ( Just Like Iking Ferry😌😁)
Imagine you opened a bank account in 2014 at one branch.
Then in 2024 you opened another account using a mobile banking app.
Does that mean the first account disappeared?
No.
You now just have two accounts in the same banking system.
That is exactly what is happening here.
Now Let’s Understand What Really Happened
1. The IPO You Bought 10 Years Ago
When you bought those bank shares through IPO:
• Your name was registered with the company registrar
• A CSCS number was created for you (even if you never saw it)
• Dividends were sent directly to you
So yes… you already had a CSCS account long ago.
2. The New Shares You Bought Through Bamboo
When you used Bamboo:
• The platform created a new trading account for you
• A new CSCS number may have been generated
• You were also given something called an NCH number
Now here is the key thing to understand.
What Is the Difference?
CSCS Number
This is where your Nigerian shares are stored.
Think of it as a vault that keeps your shares safe.
NCH Number
This is simply a trading account number created by the broker/app you are using.
It is not the same as CSCS.
It is just the ID the broker uses to manage your trades.
So How Do You Know If You Truly Have Two CSCS Numbers?
Very simple.
You just need to confirm using one of these methods:
Option 1: Contact a Stockbroker
Give them:
• Your full name
• Phone number
• Bank details used for dividend
They can search the CSCS system and confirm if more than one account exists under your name.
Option 2: Request a CSCS Statement
Ask for:
“Full CSCS account search under my name.”
If there are two accounts, it will show.
Option 3: Check Your Old Dividend Messages
Sometimes the CSCS number is hidden inside:
• old dividend alerts
• registrar messages
• e-dividend registration forms
Important Advice (Don’t Ignore This Part)
If you truly have two CSCS accounts,
you should merge them.
Why?
Because leaving them separate can cause:
• missing dividends
• confusion during share sales
• problems when transferring shares later
Let Me Be Honest With You
This is not a big problem.
Thousands of Nigerians who bought shares during:
• bank recapitalization period
• old IPO era
• public share offers
now have more than one CSCS account.
The good news?
It can be corrected easily once you verify it.
Final Truth
The issue is not that you made a mistake.
The issue is simply that the system has changed over the years — from paper shares to digital trading apps.
So don’t panic.
Just confirm:
• Do I truly have two CSCS numbers?
• Which one is holding my old shares?
• Which one is holding the new shares?
Once you answer those three questions, everything becomes clear.
I am Rose Ejituru
See less