Stock Trading in the North

By

Sani A. Dambatta

Shares in a corporation can be bought and sold, usually on NIGERIAN STOCK EXCHANGE. Consequently, the owner of shares can realize a profit or capital gain if the stock is sold at a price above what the owner originally paid for it. Economic gain represents the primary motive for the purchase of stock. The gain or return from stock consists of two parts: dividends, the periodic payments made from profits, and appreciation, the capital gain realized from selling a stock for more than its purchase price. IN the last three or more years the volume of stock traded on the floor of THE NIGERIAN STOCK EXCHANGE has witness unprecedented growth and created awareness particularly in the northern part of this country. This leads to many of our people to start thinking in STOCK TRADING. Many of my friends and relations have been asking me questions on advantage or otherwise of investment in stock or shares in various companies. This peace is intended to bring additional awareness to our people for INVESTMENT IN STOCK. For a long time only the wealthy Southerners were likely to own stocks. Middle-class and working-class Northerners generally did not participate in the stock market.

A stockholder is considered a business owner and has the protection of limited liability under the laws. Limited liability means that a stockholder is not personally liable for the debts of the corporation. The most a stockholder can lose if the company fails is the amount of his or her investment—what he or she originally paid for the stock. This arrangement differs from that of other forms of business organization, which are known as sole proprietorships and partnerships. These business owners are personally liable for the debts of their businesses.

Some companies enable stockholders to share in the profits of the company. These payments of corporate profits to stockholders are called dividends. In addition to having a claim on company profits, stockholders are entitled to share in the sale of the company if it is dissolved. They may also vote in person or by proxy on a variety of corporate matters, including the most important matter of who should run the corporation. When the company issues new stock, stockholders have priority to buy a certain number of shares before they are offered for public sale. Stockholders also receive periodic reports, usually quarterly, that provide information regarding the corporation’s business performance. Stocks generally are negotiable, which means stockholders have the right to assign or transfer their shares to another individual. How do we go about investing in stock? Ask the STOCKBROKER. Who is an employee of a brokerage firm? The individual investor contacts his or her stockbroker and provides the stockbroker with the details of the transaction the investor wants to complete. Stockbrokers, however, are more than order takers or sales representatives for their firms; they frequently provide advice to the investor. They may have their own client list and call clients when they see transactions that will fit the client’s investment objectives. Stockbrokers almost always have certification from, or registration with, a state government agency or an exchange or both.

With the last BANKING CAPITALISATION,

The north wakes up and discovers that it has one or no bank (Wholly own by northerners), which means that it has limited assess to loan able funds (politically). No control on who runs any bank, and so on and so forth. Therefore we are calling the people and Government in the NORTH to wakeup And invest heavily in BANKS and any other good companies. IN the first privatisation many state and local government purchased shares on behalf of their staff, why not now? We are seriously calling for state and local government to buy shares on behalf of their staff, if this is done, the government, staff and the people of the region will be better off. Sooner or letter dealers may only be investors of their companies.

Sani A. Dambatta