NSE: Capital Market Investment for Dividend and Capital Appreciation 

NSE: Capital Market Investment for Dividend and Capital Appreciation 

By: Balami Lazarus 

The piece is written with an understanding of the capital market, the Nigerian Stock Exchange and the Nigerian Group Exchange (NGX).  I am a part owner of some listed companies, a bona fide shareholder, and a member of the Independent Shareholders Association of Nigeria (ISAN). Therefore, I believe that this will open the eyes of someone out there to this profitable and protected business investment through the laws, rules, and regulations under the watch of the Securities and Exchange Commission (SEC) of Nigeria. 

Recently, my friend and I were listening to the Network News on NTA at 9 a.m. when business news came up on the capital market of the Nigerian Stock Exchange. My friend was not following the simple breakdown of the transactions known as deals, which quickly informed me he was a novice in the activities of the capital market, its transactions, and the lush investment opportunities that abound therein. 

However, students of business and financial management are aware of shares, common stocks, bonds, and other securities instruments available on the floor of the capital market for investors to take positions in the shares of the companies listed for daily trading at the stock exchange market. To my knowledge, some people are ignorant of the investment windows in the stock market and how they are done and carried out, where your money, time, and patience work in your favor depending on how you position yourself in the market as either a long-term, mid-term, or short-term investor. 

There are differences between capital markets and financial institutions. Financial institutions are the banks, while capital markets are the stock exchange floors where sellers and buyers transactions are expressly carried out on their behalf by brokers through securities firms, provided that they are mandated to do so by their clients, who are the investors. 

Common stocks have been the backbone of the capital market. Owership of common shares by individuals, directly or indirectly, has built individual wealth, which has helped in the expansion of the Nigerian Business Environment (NBE)..     

Therefore, investment in the capital market is safe and secure because investors are highly protected by the laws of the land. Interestingly, as a shareholder, you are a part owner of the company. “When you invest in common stock of a company, you become a part owner of the company.” This makes you a direct owner of a portion, with the privileges thereof provided by law.

Balami, a Publisher/Columnist: 08036779290

NSE: Capital Market Investment for Dividend and Capital Appreciation