Next to the Foreign Exchange Market, it is a very significant investment window for long term financial growth and return for every individual (particularly women) and organisation. In any five years, research has shown it gives returns that outpace inflation and better returns over most other financial investment overtime.
It is best for investors comfortable with long term investments and returns.
It is truly a "market" with its attendant value fluctuations dependent on forces of demand and supply.
It allows for easy entry and easy exit.
The Nigerian Exchange Limited was incorporated on September 15, 1960 and it commenced business on June 5, 1961 as the Lagos Stock Exchange. In December 1977, it became The Nigerian Exchange Limited, with branches established in different parts of the country. At present, there are seven branches of The Nigerian Exchange Limited. Each branch has a trading floor. The branch in Lagos was opened in 1961; Kaduna, 1978; Port Harcourt, 1980; Kano 1989; Onitsha, February 1990; lbadan, August 1990 and Abuja Area Office in 1999. Lagos is the Head Office of The Exchange.
The Exchange, which started with only 19 securities, traded on its floors in 1961, now has 260 securities made up of 17 government stocks/bonds, 49 industrial loan (Debenture/Preference Stocks and 194 Equity/Ordinary Shares of companies all with a total market capitalization of approximately N620 billion as at September 24, 2001. Most of the listed companies have foreign/multinational affiliations and represent a profile of the various sectors of the economy, ranging from automobile, banking, airlines, breweries, through pharmaceutical to agro-allied, publishing, textile, petroleum and insurance companies.
With the internationalization of The NGX, quoted companies can now access funds from international markets through Global Depository Receipts (GDR) or American Depository Receipts (ADR) etc. using their shares as underlying securities. Its operations are automated. Specifically, there is Central Securities Clearing System (CSCS) which takes care of clearing, delivery and settlement while trading has been changed from the Manual Call-Over System Automated Trading System (ATS), a computerized system.
It currently operates a T+3 settlement system and further details can be got from www.nigerianstockexchange.com
Regulators i.e. Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NGX). Investors i.e. individuals, organisations, women, etc. Stockbrokers Registrars Spectators (e.g. some of you) Issuing Houses Banks and other Fund Surplus UNits e.g. Pension Funds, Insurance Companies, etc. The stockbroker remains the most useful market operator to the Investors, as it is only through him/her that the investors can buy and sell shares on the stock exchange.