Is it compulsory to have CSCS and CHN account before investing in Nigeria equity
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Investing in Nigeria equity usually involves having a CSCS account and a CHN account. It's like setting up shop in a busy market. Imagine Mama Ngozi wants to sell her fresh tomatoes in a bustling market. She needs a space to display and sell her tomatoes, just like you need these accounts to trade iRead more
Investing in Nigeria equity usually involves having a CSCS account and a CHN account. It’s like setting up shop in a busy market. Imagine Mama Ngozi wants to sell her fresh tomatoes in a bustling market. She needs a space to display and sell her tomatoes, just like you need these accounts to trade in the stocks market.
The CSCS account is like Mama Ngozi’s display stall, where she showcases her tomatoes. It keeps track of the stocks you buy, like a ledger for your tomato sales. Similarly, the CHN account is like Mama Ngozi’s record book, where she keeps a list of her customers who buy tomatoes. It links your stock purchases to your name.
So, before you can start buying and selling shares in the market, it’s essential to have these accounts in place. They help you keep track of your investments and ensure smooth transactions, just like Mama Ngozi keeps track of her tomato sales and customers to run her business effectively.
Think of it this way: without a designated stall in the market, Mama Ngozi would struggle to sell her tomatoes effectively. Likewise, without these accounts, you may face challenges in trading stocks in the Nigerian market. So, consider setting up your CSCS and CHN accounts to kickstart your journey to investing in Nigeria equity smoothly.
See lessThank you I now understanding you, but the reason am asking this is that, am new investor and i want to start with equity, that is why am asking
Thank you I now understanding you, but the reason am asking this is that, am new investor and i want to start with equity, that is why am asking
See lessYes, 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
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