Nigerian Stock Exchange

A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities.

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is the main regulatory institution of the Nigerian capital market. It is supervised by the Federal Ministry of Finance.

The NSE is regulated by the Securities and Exchange Commission, which has the mandate of Surveillance over the exchange to forestall breaches of market rules and to deter and detect unfair manipulations and trading practices.

The SEC also issues licenses to and regulates all capital market operators. E.g. Stockbroking firms, Issuing houses, Registrars etc.

Central Securities Clearing System

CSCS is a subsidiary of the NSE, but an independent company. All shares to be traded on The NSE floor must be deposited with the CSCS, which does clearing and settlements of trades for The NSE.

A stockbroker is a regulated professional individual, usually associated with a brokerage firm, who buys and sells shares and other securities for both retail and institutional clients.

A brokerage firm, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm’s stockbrokers.

A share is a single unit of ownership in a corporation, mutual fund, or any other organization. A joint stock company divides its capital into shares, which are offered for sale to raise capital, termed as issuing shares. Thus, a share is an indivisible unit of capital, expressing the proprietary relationship between the company and the shareholder. The denominated value of a share is its face value: the total capital of a company is divided into a number of shares.

Stocks and Shares are bought and sold on The Nigerian Stock Exchange through dealing members known as Stockbrokers.

A registrar in common parlance is a keeper of records in respect of quoted stocks and shares

Market Making is the process whereby a broker-dealer, provides continuous two-way quotes (comprising of buy and sell prices and sizes) to the market for the securities that they make markets on during the trading day – one indicating the price and size he/she is willing to buy a particular security, called the ‘bid’; the other indicating the price and size he/she is willing to sell that same security, called the ‘ask’, or ‘offer’.

A broker-dealer licensed to execute such trades is known as a Market Maker.

Dematerialization is the conversion of a share certificate from its physical form to electronic form for the same number of holding which is credited to your demat account which you open with a Central Securities Clearing Systems Limited (CSCS) through a licensed Stockbroker.

 

The All Share Index is an aggregate of the market capitalization of all of the industrial equities listed in the market.

Listing refers to the company’s shares being on the list (or board) of stock that are officially traded on a stock exchange.

Delisting refers to the practice of moving the stock of a company from a stock exchange so that investors can no longer trade shares of the stock on that exchange.

Simply pick up the account opening form either Individual or Corporate from our office or download the forms from this website. The download links can be found on the right side of this page.

If you have any questions regarding the account opening process, please send a mail to customerservice@nisl-ng.com. Your enquiries will be attended to as soon as possible

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