Experts in the financial sector have highlighted the benefits of investing in the stock market and how Nigerians can go about it.
They spoke at a virtual event was organised by Stanbic IBTC Stockbrokers to enlighten Nigerians on the potential of investing in the stock market.
The Head, Sales Trading, Stanbic IBTC Stockbrokers, Afolabi Gbenro, while explaining the importance of diversifying investments in stocks, listed factors that affect the prices of stocks to include supply, demand, news, and investor sentiments.
“The benefits of investing include dividend yield, capital appreciation, equity share holder privileges and utilising investments as collateral,” he said.
He advised Nigerians to conduct their own research and evaluate companies before investing.
“You would need capital, investment objective, and risk profile assessment to determine the kind of investment you should venture into. You would also need to stay abreast of market updates,” he added.
The Head, Mandate and Settlements, Stanbic IBTC Stockbrokers, Benjamin Jesumuyiwa, urged Nigerians to invest in stocks to reap long-term rewards.
He said, “The stock market makes it easy to buy shares of companies and they can be purchased through a broker or via online platforms.
“Stanbic IBTC Stockbrokers offers a discounted rate of 0.7 per cent on brokerage fees. Once you have set up an account, stocks can be purchased in minutes.”
The Founder of Money Africa, Tosin Olaseinde, advised beginners to invest while gaining knowledge about the stock market.
She recommended exchange traded funds as an entry point, especially for people who have an aversion to high-risk investments.
“As a beginner, the best place to start is the exchange traded funds. It is a mixture of different equities in one stock. It offers you the opportunity to participate in a couple of stocks without buying everything individually,” she said.
Solafunmi Oyeneye of Wealth Motley, a personal finance educator, cited liquidity and dividends over a long period of time as advantages of trading stocks.
Jennifer Awirigwe, a certified financial educator, described the stock market as a good place to invest “because it is highly regulated, and the risks can be easily assessed”.
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