ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Investment In Stocks.

Updated on August 21, 2010

 Shares are the units of ownership of a given company whether private or public. So, when one buys up a unit of shares he/she has bought over a bit of the company’s ownership. As such he becomes a SHAREHOLDER; his name is registered in the Shareholders Register. Such a person has equal rights with other shareholders like; attending company meetings, voting, receiving dividends, script offers, bonus shares and yearly financial reports inter alia.

In investing in shares, you need due diligence, information and no matter how little the Capital is, you will surely make it. You don’t need warehouse, shops, marketers, power generators, advert rates, transporters, shipping and clearing cost and much physical engagement. All you need is to buy some units of shares of a given company and while you go about other things your money is being worked for you. At the end of a financial year dividend is paid to you and you reserve the rights to sell your shares at a higher price, any time. So when more people buy Dangote flour to bake and celebrate it means profit for the shareholders. When more people drink out the kidneys for happiness or sorrow its good business for an investor in breweries. You may be surprised to know that you can invest even $100. All you need is Information and others will enrich you with ease.

 One can be a shareholder of a Private liability Company or Public Liability Company; whether quoted on the Nigerian Stock Exchange or not. But, it’s better and safer to invest in quoted companies; for transparency, security, easy marketability and monitor. To invest in companies quoted at the Nigerian Stock Exchange one can do so through any of the two doors: Primary Market or Secondary Market.
The primary market is much limited unlike the secondary and all you depend on is the dividend if the company resolves to pay, because you can’t sell at ease.

Often times you have heard on air or read on papers of adverts of companies selling shares and may be you went to banks to purchase them over the counter; that is the Primary Market. In the primary market one hears of Initial Public Offer (IPO) that is public selling of a company’s shares for the first time. And Public Offer (PO) is the public selling of shares of a company, but not for the first time. Note that, the adverts are mere INVITATION TO TREAT not an OFFER, stricto senso; rather you ”offer” to purchase by filling share subscription forms. As such, the company wields the discretion to accept your offer to purchase their shares or rescind such, and communicate same to you, timely. This market allows the selling company to stipulate the least amount and multiples of shares that one can purchase of its shares. Unlike in the secondary market where one can buy as much as he desires. All shares must be fully paid up upon subscription. Presently in Nigeria, it takes up to four or six months before Shares certificates are being issued and delivered to shareholders after allotment. But in the secondary market you are issued Contract notes instead, upon you waiving your rights to share certificates enshrined in section 146 and 147 of the Companies and Allied Matters Act, 1990,cap C20 LFN 2007, not waiting for donkey years. A share certificate is a prima facie evidence of ownership of allotted shares in a given company. If your subscribed shares are not allotted to you, your invested money will be returned to you and with interest if delayed.
Hence as a registered shareholder of a company, you have your rights and duties; right to company meetings, voting, dividends, bonus shares, script offers, companies financial records and corporate politics, inter alia. Now you are part and parcel of the company; you loss when they loss and you gain when they gain. This is the market most of our people indulge in and you see them displaying their share certificates like laurels and awards in ignorance. There are limited and I pray you don’t get pessimistic because of their little profit. Many multi billion shareholders across the world started from the primary market, albeit most of them later moved into the prestigious Secondary Market. Remember you can invest straight into the secondary market without going through the primary.

 Join me in next edition, as we explore the secondary market; where the market knows no limits; place of magic stocks!


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)