How to get close to the stock market
Before investors can start a successful trading in the Nigerian stock market, there are some basic skills that need to be able to position themselves to maximize profits.
The Nigerian stock market consists of two markets, the main market and the secondary market. If you want to succeed, it is important to understand how these two markets operate. At this intersection, let the X-rays of these two markets understand their work.
1. Main Markets
The main market is to raise new funds and anyone who buys stocks in this market does not pay any commission if the IPO of the company to the public, Is to fill out forms and issue checks,
The main market is the time from IPO to distribution completion, and money returns to those who can not get what they ask for. The main markets are new (unlisted) and old (listed) can raise money through PO, IPO, right issues in the future. In addition, it is mentioned here that private placement is also carried out by small companies wishing to be listed on the NSE and privately financed by the public.
2. The Second Market
In order to have a competent place to purchase and Exit, institutional and individual transactions of listed companies stock platform. The secondary market is where potential investors can buy and sell such stocks. Those who have bought in the primary market and have received stock and those who are directly engaged in the trading business in the primary market.
3. How the secondary market works.
Once the company is listed, its shares are traded. The Issuer Broker announces the listing of the Shares and subsequent trading of the Broker's shares from that date. Stock brokers are traded on behalf of stockbroking companies; they are members of the Nigerian Stock Exchange and are represented by stockbrokers on the trading floor.
When a customer wishes to purchase a stock through your stockbroker's advice or in accordance with your own understanding, upon the conclusion of the purchase agreement, the client issues a written authorization to the stockbroker to designate stock. He will also complete forms and transfer forms for CSCS shareholders. The information provided enables the customer to receive communications from registrars and CSCS Limited. In the future, on these basis, dividends, bonuses, annual accounts and reports will be sent to him. The client will be issued a contractual document by the stockbroker company, which is evidence of the purchase. When the value of the stock in the price of capital increase to a considerable height, he filled out the sale of tasks, mandatory stockbroker / company on behalf of his sale. In the final analysis, close to the stock market requires you to get the basics so that you can know how to manipulate the water in uncertain waters at times.
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