For many people, investing in shares can be a very complicated process, but it can be made easy with a little help from professionals, udeozochibuzo Blog writes
saving money and investing are part of steps that are often talked up by financial experts when asked to give tips that can lead to financial freedom.
When it comes to investing one option that is hardly left out is investing in stocks. However, not too many people are keen about dealing with all the figures they believe they will have to face if they invest in stocks. And then there are the terms they have to deal with – dividend, ordinary shares, percentages and money in kobo.
Experts, however, say that the apprehension by many people is unnecessary as with the help of professionals it is a great avenue through which people can put their money to work. Also, the process is not as complicated as it is often taken to be.
Getting started-the first step people should take when they decide to invest in stocks, having saved money for the purpose, is to get a good stockbroking firm they would then be able to open an account with the Central Securities Clearing System, which in turn would make it possible for them to buy stocks, people cannot go out and buy (stocks) on their own; they must go through a stockbroking firm. If you are buying from the primary market, that is the one that the company advertises directly, in filling the forms, they must state the name of their stockbroking firm and their CSCS account number. For the secondary market, they must inform their stockbroker, who will then go to the stock exchange and buy for them on a daily basis.”
Anytime a stockbroker wants to buy stocks – either equity or bonds, for an investor, they must be bought into that investor’s CSCS account. Anytime we trade on the floor of the Nigerian Stock Exchange, the accounts that are used in trading, where the stocks settle into are CSCS accounts. So, investors must have CSCS accounts.”
Trading Costs-Commissions and fees are assessed on a sliding scale that is standard across all brokers. For transaction amounts less than N1,000,000 (roughly $6,350.00) you will pay 1.86% when purchasing a stock and 2.19% when selling one. For larger transactions, commissions and fees total 1.49% of the total transaction value to buy and 1.82% of the total transaction value to sell.(Stay logged onto http://www.udeozochibuzo.wordpress.com for PT2 of this post)
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