How do i buy Nigerian shares? In this article, tips on how to buy shares in Nigeria will be provided. Buying shares in Nigeria isn’t just for the rich or working class alone; do you know that as a student, you can also buy Nigerian shares? Yes, you can! You just have to know about the Nigerian stock market.
Before buying Nigerian shares, you have to learn about the different kinds of investments you can make on the stock market. You must also know how the stock market works and be prepared to make your first investment. To most people, buying Nigerian shares is a way of increasing their wealth and financial security. The benefit of buying Nigerian shares is that it provides the foundation you need to secure your future financially, and this should be your topmost priority.
What Are Shares?
Shares are known to be a single unit of ownership in a firm, company, or cooperative. For a better understanding, shares are certificates that show the holder’s part ownership of a company or cooperation. When a corporation is in need of funds, they release shares that can be bought by the public. Now each stock represents a percentage of ownership in that corporation. So when you have a share in a corporation, you automatically have a percentage of ownership in that corporation.
Benefits of Buying Shares in Nigeria
When it comes to buying Nigerian shares, there are lots of benefits attached to them. So before you buy shares in Nigeria, you need to know the benefits. Below are some of the benefits of buying shares.
Protection
Most times, inflation and taxes may destabilize your wealth, but investing in stocks will bring favorable long-term tax treatment that will reduce or control the consequences of these inflation and taxes.
Liquidity
As an investor, you can liquidate your shares for cash. Stocks are traded more often than other types of investments like jewelry, artwork, or real estate.
Capital Expansion
Buying shares in Nigeria calls for capital expansion, which means that when the price of a stock rises, investors or shareholders can decide to sell it to gain more profit. Note that a stock’s price swings over time. When it does, it will be a great opportunity for you to sell it and gain more profit.
Favorable Tax Treatment
Another benefit of buying Nigerian shares is that the income gotten from capital gains and dividends is usually taxed at a lower rate than the income from wages and bond interest.
Freedom to vote
As a shareholder in a company, you have the freedom and right to vote, even though you have a small percentage of the company’s capital. You have an influence over the selection of the management of the firm or board of directors; you can decide who will be sacked and who will not be sacked.
How To Buy Nigerian Shares
When it comes to buying Nigerian shares, the process is very easy. If you are a Nigerian who wants to buy shares in Nigeria, you can just follow these simple steps below to do so.
Find a Stockbroker
The first step is to find a stockbroker; you must find a reliable broker who will connect you to the stock exchange market. When you want to choose a stockbroker, you must ensure they have experience in the stock exchange market and the specific country you are buying into. Aside from that, make sure they are licensed and registered with the Nigerian Stock Exchange (NSE).
Create an Account and Get Verified
After getting a certified and reliable stockbroker, the next step is to create an account and get verified. The process of creating an account usually takes a few day. But for online stock brokers, it takes just a few minutes. So when creating an account, you will need to provide some details, such as passport photographs, a government-approved ID, and utility bills.
Deposit Funds into your Account
After creating an account, the next step is to deposit funds into your account. Once the fund has been deposited, it will be used to trade shares. If you are an online broker, you might download your stockbroker app, sign up, and then log into the account to fund your wallet. You can even trade directly from the app; this will be easier and faster.
Determine Which Shares to Buy
You are now ready to pick a stock to buy once you have registered and funded an account with a broker. However, before you start trading, do thorough research on the company you want to buy shares in. Check out their financial statements, shareholder information, and other relevant information. Once you have done that, you can now go ahead and buy the shares.
Calculate the Quantity of Shares to Buy
At this point, you are now ready to buy a share; you have to calculate the quantity of shares to buy. You should not be forced to buy a share, and you should only buy a share you can afford. It is advisable to buy a small quantity and then increase it later, when you are 100% sure of the market.
Start Trading
Once you have decided on the quantity you want to buy, you can now start trading. All you have to do is let your broker know, and they will purchase the stock for you. Your broker will then send you a contract note containing the details of the share investment once they are done.
Monitor and Track your Investment
Once you have started trading, you need to monitor and track how your investment is going. You have to watch price fluctuations constantly so that you can know when to sell your shares or not.
Conclusion
Buying stocks in Nigeria is very easy with the help of different stock brokers. As a Nigerian, investing in the stock market is a good opportunity for you to make more money. But before you invest, you need to know how the stock market works. You can follow the helpful tips provided above to start investing in Nigerian shares.
