Benefits of investing in stocks

This represents the interest on your investment after one year. In 2007, First Bank Nigeria gave a dividend of N1, Zenith Bank gave a dividend of N1, while Flour Mill Nigeria gave a dividend of 90k.

For example, since Zenith Bank declares a dividend per share of N1, it means that you are entitled to N10,000 if you own 10,000 units of Zenith Bank shares. The N10,000 will be accounted for as a dividend guarantee (net of tax withholding).

I read the story of a man who got a four million naira dividend from the dividend paid by First Bank Nigeria in 2006. This man had four million units of First Bank shares in 2005 when he retired. During all his years of work, he invested not in other stocks, but in First Bank stocks and Union Bank stocks. In 2006, when First Bank Nigeria gave a bonus of one for one (1: 1) that is for every share you have, they give you another. The man’s total stock has doubled to 8 million units. First Bank also declared a dividend of N1 per share, so the old man went home with N4, millions of dividends. No matter where you are now, financially, you can do so through the Nigerian stock market. You can build your wealth through the market.

Bonus Actions

These are additional shares paid in full from the company’s reserves to existing investors in proportion to their current stake in the company.

ADDITIONAL STORY OF THE FIRST NIGERIA BANK

Year – owned shares – bonus ratio – free shares – new shares

1992 10,000 units – – 10,000 units

1993 10,000 units 1 by 3 3,333 13,333 units

1994 13,333 units 1 for 1 13,333 26,666 units

1995 26,666 units 1 by 4 6,666 33,332 units

1996 33,332 units 1 by 4 8,333 41,665 units

1997 – – – –

1998 41,665 units 1 by 4 10,416 52,081 units

1999 52,081 units 1 by 4 13,020 65,101 units

2000 65,101 units 1 by 4 16,275 81,376 units

2001 81,376 units 1 by 4 20,344 101,720 units

2002 101,720 units 1 by 4 25,430 127,150 units

2003 127,150 units 1 per 5 25,430 152,580 units

2004 152,580 units 1 for 8 19,072 171,652 units

2005 171,652 units 1 per 6 28,608 200,260 units

2006 200,260 units 1 for 1,200,260 400,520 units

In 1992, First Bank’s shares were N2. If you had invested twenty thousand naira (N20.00) in 1992 to buy 10,000 units, the bonus history to date shows that it will be worth more than twenty-eight million naira as of March 2006 when First Bank shares were sold for N72. Additionally, bonus history shows that the 10,000 units of First Bank shares purchased in 1992 have risen to 400,520 units. What a great cap!

Capital appreciation

Enjoy capital appreciation as the market price of purchased shares increases. Over the past two years, stock prices on the Nigerian stock exchange floor have seen tremendous growth. In 1992, First Bank was N2 and in the first quarter of 2006, it was moved to N72. Japaul Oil & Maritime was 0.99k in December 2006 and in October 2007, it went up to N6.02k.

Price movement analysis for 5 years

2003-2007

RT brisco N2.8 N32

GT Bank N5.2 N36.19

UACN N4.1 N40.19

Glaxo -Smith -Kline N3.3 N23

Nestlé Nigeria shares were sold for N76 in March 2003 and the highest price in 2006 was N254.1, which means 10,000 units of Nestlé shares in March 2003 at N76 per unit will be worth N760,000. The price It was N254.1 in 2006, it will be sold for N2, 541,000, that is, 10,000 x N254.1 = N2, 541,000. He is already a millionaire. Don’t forget you only invested N760,000 in buying stocks. Now he is making a profit of more than 1.7 million naira. What a smart way to earn money and make your money work for you.

Guarantee for loan

Your shares can be used as collateral to obtain a loan from the bank. If you need a loan for a capital project or to expand your business, your stock could be all you need to overcome the pain of the never-ending search for money.

Protect your money from inflation

Your investment in the stock market is a means of protecting your money from the ravages of inflation. Your money can continue to work for you without losing value.