DISCOVER HOW TO ENJOY THE BENEFITS OF THE STOCK MARKET

The stock market can be likened to a familiar physical market, such as Oshodi Market, Lagos Market, or Agege Market in Lagos, Nigeria. In these markets, people go to sell, buy, or just look around (often referred to as window shopping). Additionally, you'll find security personnel, like police or traffic wardens, who manage the flow of people and vehicles. Some individuals travel from outside Lagos to purchase goods in these markets, knowing they can make a profit by reselling them in their cities.

Now, let’s relate this to the stock market. In a traditional market, physical commodities are sold, while in the stock market, shares of publicly listed companies are traded. When a company becomes listed on the stock market, it means they are offering part of their ownership for buying or selling. Thus, if you purchase shares of a company, you become a partial owner of that company. For example, consider the Nigerian Aviation Handling Company (NAHCO). As of January 2024, shares of NAHCO were selling for about ?27 each, and they are now priced above ?60. This means that if an investor bought the shares at ?27 and sells them at ?60, they would have made a profit of ?33 per share. While ?33 might seem small, if you sell 500,000 shares, that adds up to a profit of ?16,500,000 before transaction charges. This is an example of capital appreciation in the stock market, where your money works for you.

?Another advantage of investing in the stock market is the dividend yield. Once you buy shares of a listed company, you become a co-owner. At the end of the financial year, if the company makes a profit, it shares a portion of that profit with its shareholders, known as dividends. For illustration, if an investor holds 2 million units of Zenith Bank shares and receives a final dividend of ?3.50 per share, that investor would earn ?7,000,000. You might wonder how to accumulate enough money to buy 1 million, 2 million, or even 3 million shares at a time. This is where perseverance and consistency come into play. Becoming an investor begins with a decision to start, based on your financial capacity, and you can gradually build on that over time.

If you would like to make further inquiries or need the services of a stockbroker, feel free to reach out to me on my WhatsApp number at +234 802 6940 605.?

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