The Nigerian Stock Market and You: The Smarter Ways to Play

Almost everyone wants to make money in the stock market. But a lack of knowledge of what it takes to be successful in stock investing has discouraged many people from fulfilling their investment and financial aspirations. Therefore, it is imperative to X-ray this text entitled “The Nigerian Stock Market and You: The Smartest Ways to Play” to offer the necessary guidance to such people.

It is written by Moses Onyebuchi, a stock market analyst and inspirational speaker who has a vision to teach people the principles of success that will ensure lasting achievement in life. Onyebuchi graduated in Economics from the University of Nigeria Nsukka (UNN), Nigeria, and offers financial and investment advisory services.

According to Onyebuchi, this book has been written to free investors from financial shackles. He says it’s important in stock investing that investors have a clear understanding of what they’re doing with their money. It is those investors who really do their homework who are successful, as a successful investment requires time, initial capital, knowledge and skill; and determination, educate Onyebuchi.

He advises that for you to get an edge over other investors, you should read stock investing books. The author emphasizes that he doesn’t have to wait until he has a lot of money or the market is bullish before reading about the stock market. Onyebuchi says that sometimes the best time to study the market is when no one else is interested.

The author assures that this book is rich in quality information that will transform your life, starting with the overview of the Nigerian capital market, the operations of the market, the guiding rules for investing in the capital market, the secrets of investors successful, the common mistakes of investors. , etc. He extends that the book has specific goals of providing wage earners with an additional source of income; guide retiring employees on high-yield, stress-free investment options; reveal ways to respond to changes in the Nigerian stock market, etc.

The book has 12 chapters. Chapter one is dubbed “Overview of the Nigerian Stock Market”. According to Onyebuchi, the Nigerian stock market is a specialized market where shares are bought and sold; a market where long-term funds are raised through equity and debt instruments. He says that these instruments are subsequently traded openly on the stock market and include stocks, bonds, industrial loans, derivatives, etc.

This author reports that the Nigerian capital market is divided into primary and secondary markets. Nigeria’s primary market, according to Onyebuchi, is the one that secures funds for initial issuers of shares. That is, the market provides an avenue for companies seeking new funds to raise them with the help of an application form issued by the issuing house on behalf of the issuers – the companies.

Onyebuchi explains that the secondary market is the trading of shares listed on the stock exchange. He says that this market is the center of the capital market because it is the market in which the members of the market, that is, the stockbrokers, buy and sell shares of companies or the government. The presence of the secondary market for stock trading makes investing through the primary market beautiful, as shares bought on the primary market can be easily sold on the secondary market, the author reveals. He adds that no investor can trade on the floor without going through a broker.

Chapter two is based on the topic of Nigerian stock market operations and its operators. According to the author, the Nigerian Stock Exchange provides the trading floor for shares in the Nigerian capital market. In his words, “The Nigerian Stock Exchange regulates the activities of market operators by ensuring order and sanity in the market and also ensures that listed companies comply with post-listing requirements.”

Chapter three is entitled “Guide to investing in the capital market.” According to the author, today there are many reasons why one would invest in the capital market. He adds that intent can vary from investor to investor, emphasizing that investment objectives would determine the type of stock to buy or sell, how much to hold and for how long.

The author says that before investing in the capital market, whether as a potential or existing investor, you should first consider your investment philosophy; create a written set of rules; know your risk tolerance; Trade with confidence and be patient. When it comes to the company you want to invest in, Onyebuchi cautions that you should consider its superior earnings growth; excellent management; value creation; higher benefits and performance indicators.

In chapters four through eight, Onyebuchi analytically discusses concepts such as understanding stock market vocabulary; key ways to succeed in the stock market; Ways to Lose Money in the Nigerian Stock Market; how to read and understand the stock table; and the design of a diversified portfolio.

Chapter nine is based on the topic of weight points that investors should be aware of. Here, the author says that an investor who deposits his share certificate in the Central Securities Compensation System (CSCS) for the first time is expected to complete the shareholder data form. He adds that with this two numbers are assigned, the clearinghouse number and the investor’s account number at the brokerage house. Onyebuchi explains that the latter links the investor to the brokerage firm, while the former links the investor to the CSCS.

In chapters 10 to 12, Onyebuchi casts his intellectual spotlight on such concepts as Nigerian stock market fraud; causes, effects and repositioning of the Nigerian stock market crash; and frequently asked questions from investors.

Stylistically, this text is fine. Despite the technicality of the topic, the language is still understandable, especially since the technical words are explained contextually. Onyebuchi uses graphic embroidery to visually enhance readers’ understanding. The outer cover design suggests the overall theme. The layout of the book is easy on the eyes, with emphatic messages framed for visual distinction. To fulfill the academic or intellectual obligation to disclose the source for credibility purposes, a bibliography is included at the end of the book. The main points of each chapter are also summarized at the beginning to ensure easy study.

However, some errors are noted. One of these is “Acknowledgments” (page vii), instead of “Acknowledgments”. Others are: “The Ultimate Binds the Investor…” (page 177) instead of “The Ultimate Binds the Investor…”; “To enable you to protect…” (page vi) instead of “To enable you to protect…”, etc.

Overall, this text is a treasure trove of stock investing knowledge, specifically how to successfully invest in the Nigerian stock market. It is essential and a must read for anyone who is poised to achieve tremendous success investing in stocks in Nigeria. It is intellectually irresistible.