Do you wish to invest in the Nigerian Stock Exchange market, but you do not know how to go about it?
You have, probably, read a lot, about the stock market situation in the country and just developed an interest in the space, then, this article is for you.
This article shows some insights that may, likely, inform your decision.
Before going into the details, you have, to be aware that, you are only eligible to transact shares of companies that are, publicly, quoted on the Nigerian Stock Exchange.
If your interest, however, lies in dealing in equities, around private companies, then, you have to look beyond the Nigerian Stock Exchange.
The place for you is the National Association of Security Dealers Over-The-Counter, (NASD OTC).
Commencing trade in equities in Nigeria requires that, you get a brokerage account opened, with any stockbroking firms in the country.
After opening your account, you will be required, provide means of identification, alongside some other details, which include, Bank Verification Number, (BVN), account holders signature and passport photographs.
It does not take up to two days, to open your account.
As most organisations do, stockbroking firms have their presence online, so, as an enthusiast, you are not, necessarily, required to be, physically, present at any of the approved stockbroking firms.
It is essential that you open a Central Securities Clearing System, (CSCS), account.
The CSCS is the marketplace that, cumulates all accounts created, by stockbrokers in the country.
This account offers a platform that, allows you to be independent of your stockbroker, such that, you have a view, of your stocks and also, minimising your risks.
How Do I Start?
After opening your stockbroking account, then, the journey to start trading in equity has just commenced.
You will be handed a Clearing House Number, (CHN).
Trading involves you, depositing your money, with your stockbroker, who goes ahead, to buy shares, on your behalf.
It is hoped that you have found this useful, to this point. The rest of the insights will be shared with you in an article, coming soon.
Featured Image: Vanguardngr
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