A share is a unit of ownership in a company. In other words, when you buy shares of a company you become part owner of the company and have the rights to share from the fortune of company and contribute to major decisions at the Annual General Meeting of the company.

What are the benefits of investment in shares?

The benefits are numerous, however I will mention just a few:

1. COLLATERAL: It serves as collateral, whenever we need loan from the bank. It is easier to use as collateral than using buildings. No need of certificate of occupancy, no need of evaluation by estate valuers. By looking at your shares certificates or CSCS statement, the bank manager knows the value of the shares and you also know. Shares are the most preferred collateral security because of its liquidity.

2. DIVIDENDS: As a part owner of a company, you are entitled to dividends. Dividend is a cash reward made by a company to its owners out of the profit made at the end of a financial year. The amount of dividend received is determined by the volume of your shareholding.My mother used the dividend she received between 2000 and 2003 to build 2 units of 3 bedroom flats in Lagos.

3. BONUS SHARE: This is similar to dividend but it does not involve cash payment. When a company gives bonus shares, it means every shareholder is entitled to additional free shares. N3500 used in buying 1000 units of First Bank shares in 1993 have grown to over 54,000 units valued at almost N900000 in 2013 due to bonus shares and growth of the company.

4. CAPITAL APPRECIATION: Shares of companies may appreciate due to the forces of demand and supply, growth of the company, management competence or growth in the economy.



http://www.jarushub.com/14-benefits-of-shareholding/

emmanuel ewumi:
A share is a unit of ownership in a company. In other words, when you buy shares of a company you become part owner of the company and have the rights to share from the fortune of company and contribute to major decisions at the Annual General Meeting of the company.

What are the benefits of investment in shares?

The benefits are numerous, however I will mention just a few:

1. COLLATERAL: It serves as collateral, whenever we need loan from the bank. It is easier to use as collateral than using buildings. No need of certificate of occupancy, no need of evaluation by estate valuers. By looking at your shares certificates or CSCS statement, the bank manager knows the value of the shares and you also know. Shares are the most preferred collateral security because of its liquidity.

2. DIVIDENDS: As a part owner of a company, you are entitled to dividends. Dividend is a cash reward made by a company to its owners out of the profit made at the end of a financial year. The amount of dividend received is determined by the volume of your shareholding.My mother used the dividend she received between 2000 and 2003 to build 2 units of 3 bedroom flats in Lagos.

3. BONUS SHARE: This is similar to dividend but it does not involve cash payment. When a company gives bonus shares, it means every shareholder is entitled to additional free shares. N3500 used in buying 1000 units of First Bank shares in 1993 have grown to over 54,000 units valued at almost N900000 in 2013 due to bonus shares and growth of the company.

4. CAPITAL APPRECIATION: Shares of companies may appreciate due to the forces of demand and supply, growth of the company, management competence or growth in the economy.



http://www.jarushub.com/14-benefits-of-shareholding/

http://www.jarushub.com/14-benefits-of-shareholding/







4. CAPITAL APPRECIATION: Shares of companies may appreciate due to the forces of demand and supply, growth of the company, management competence or growth in the economy.

5. LIQUIDITY: Shares of blue chip companies are very liquid; it can be easily converted to cash. One million units of Nestle shares valued at over N1 billion can be converted to cash within a week, whereas a property valued at N100 million can be in the market for a year or more.

Shares.......I don't wanna go down there...I will rather invest my money on other things than go into shares.....to me it doesn't work for me

ULSHERLAN: Shares.......I don't wanna go down there...I will rather invest my money on other things than go into shares.....to me it doesn't work for me

It is better you invest in what you understand. I guess you do not really understand how the stock-market works.

Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressed me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I know

op, thanks for the info, the little I understand abt the stock market has made me to at least invest the much I could at the moment, hoping that the future will be better. Front page

ULSHERLAN: Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressing me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I know

It depends on the company and ur aim. Are u there for short term or long term? u dnt invest money that u will need urgently in shares. My advice is, make use of what u can set aside.

ULSHERLAN: Yea I don't and that's why I went thru a stock broker.....but what happened at the end only a few company impressing me others are dormant. No bonus no dividends and all....I'l rather use my money to eat than buy shares. Am not discouraging anybody, am just saying what I know

You need to invest in your financial education. Lasting wealth is made on a slow and steady basis. I guess you thought the stock-market is a place to make fast and easy money.

Mascot lawman:
It depends on the company and ur aim. Are u there for short term or long term? u dnt invest money that u will need urgently in shares. My advice is, make use of what u can set aside.

Hmm you just said some few good points. Well there are companies am really enjoying in the shares thing with bonuses and all. Funny enough its bn a while now if I can still remember when

ULSHERLAN:
Hmm you just said some few good points. [b]Well there are companies am really enjoying in the shares thing with bonuses and al[/b]l. Funny enough its bn a while now if I can still remember when

Can you tell us some of these companies.

That's right.

I'm tutoring my kids already on stocks/shares.

11

IT SEEMS LIKE A HUGE RISK...WOULD LOVE TO BUT MY DAD LOOSED ALL HIS MONEY ON IT AND IT WAS A VERY HARD PERIOD DEN.


PLS LIST COMPANIES IN WHICH MY MONEY WOULD BE SECURED AT THE LONG RUN.

ok

I don't like to invest on shares

Cool! Young people should also invest in real estate:https://www.nairaland.com/bunchyproject

Financial indiscipline is one area I need to work on, I just find it difficult to save from my feeding allowance. Lord have mercy

Vista Rulz........

.

I want to buy shares oo, pls ao much is d least amt one shuld expect as dividend for a share of lets say #10,000 in a healthy bank. Pls o am still a student, will d dividen b able to pay my monthly BIS subscription?

bunchyproject: Cool! Young people should also invest in real estate:http:///4HB6LY

Real estate requires quite a lot of capital oo.

mister josh: Real estate requires quite a lot of capital oo.

. Hmmmmmmm!

im nt into d business lane bt i find this captivating. Will love to knw more abt this. OP this is kul, do more to educate interested pips lyk me on this.

OK

mister josh: Real estate requires quite a lot of capital oo.

True but you can form a syndicate with 5 - 8 partners to invest in real estate. Only thing is not sure if this can work in Naija.

Well I don't fink it's wise to invest in shares esp wen u consider d dwindling economic status quo we plunge ourselves in...i rem few yrs baq ow many pple died n had stroke wen d capital mrkt plummeted....d best investment is in oneself...

What about those that know nothing about the stock market or how it works

mister josh: I want to buy shares oo, pls ao much is d least amt one shuld expect as dividend for a share of lets say #10,000 in a healthy bank. Pls o am still a student, will d dividen b able to pay my monthly BIS subscription?

Sharp guy. Experts in the house, answer please.

I thought the capital market in Nigeria is no longer a goldmine

D reasons given are so deceitful, and they were not critically analyzed.

Subscribing....

Look, shares this days don't do anybody any good jare... Last I was in Nigeria , I know how much I take invest now I looked at it, believing at all at all interest go don dey.. Oh Boi, if I could cry, I would have at first sight of what I saw.. It was a complete waste of money.. The only way am going to invest in anything again is if i am guaranteed that I would at least get my exact money back if any thing bad happens.