You might have heard of the NGX and wondered what really is the stock market and how can you start trading in it? or maybe you don’t understand the terms and you are just curious to know more?
The is a beginners guide into the stock market and how to start.
What is the Stock Market?
The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter.
Stocks, also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such assets.
Why does this relate to the NGX?
In Nigeria, the central hub for stock trading is the Nigerian Exchange Group (NGX), formerly known as the Nigerian Stock Exchange (NSE). It facilitates the buying and selling of stocks, bonds, ETFs, and other securities.
The Nigerian Stock Exchange Alternative Securities Market Index (NGX-ASeM) is an innovative platform for small and medium-sized enterprises (SMEs) to access the capital market for growth and development.
NGX- offers SMEs a flexible, low-cost, and efficient solution to raise capital, providing investors with a new source of investment opportunities in emerging sectors.
The NGX-ASeM index tracks the performance of listed companies in sectors such as technology, healthcare, education, and renewable energy.
It also provides updated information on the growth and progress of SMEs in Nigeria and helps you make informed decisions.
How to start investing in stocks
Choose a licensed stock broker
Make enquiries on stock brokers that are registered with the Securities and Exchange Commission that can assist you in your journey into stock investing.
Open a Brokerage Account and Fund your account.
You need an account to keep records of your shares and value. The Central securities clearing system keeps electronic records of shares. Then you can fund your account according to the minimum or maximum amount of stocks you want to buy. It also depends on the platform you’re investing in.
To open a brokerage account successfully, you will need
• Valid identification
• Proof of address
• Bank account details
• Bank verification number
Start trading
There are different types of trades you can make
• Market orders – These types execute immediately at the current market price.
• Limit orders – These types execute only when the stock reaches a price you’ve set.
Stock Market Hours
The Nigerian stock market operates Monday to Friday from 10am to 2:30pm , excluding public holidays.
Bottom line
Ready to take the next step to invest in the Stocks?
Let EquiCircle be your guide. Contact Us to get started TODAY.
