BASICS (6): KEY PLAYERS IN THE NIGERIAN CAPITAL MARKET

For those who want to buy stocks and shares, it helps to know who is who in the Nigerian capital market. In this instance, it is well understood that the capital market includes but goes beyond the Nigerian Stock Exchange.
A capital market is the overall financial market through which people can invest in stocks and shares of both the private and public kind of limited liability companies. Hence, in the case of Nigeria, the top organisation in this regard is The Securities and Exchange commission (SEC). It approves all the stocks and shares offered for sale; registers all key players in the capital market and regulates and monitors the market in the interest of all, particularly the investing public.
Next in line is the Nigerian Stock Exchange itself although its significance becomes real only when an investor decides to sell or buy shares of publicly quoted companies. These are companies, after SEC had approved their share or stock issues, decide to quote such issues in the Nigerian Stock Exchange (NSE) so as to make it easy for shareholders to buy and sell such issues whenever they like.
The Stock Exchange has nothing to do with the valuation, issue and timing of new issues of stocks and shares; that is the job of SEC but it must be informed of new issues planned for already quoted companies. It only provides the market for pricing and dealing in stocks and shares.
Thus, for the majority the attractiveness in buying stocks and shares stem more from the fact that there is a market where the stocks and shares can be sold ,or more can be bought, as personal financial position demands. Shares of unquoted public limited liability companies too can also be bought but to get out or buy more could become a real headache later.
The next major player at the capital market are the issuing houses. They are the ones who put together all the professional and basic requirements needed before stocks and shares can be offered to the public or through private placements. Actually, such new issues come unto to the market with their own professional reputation on the line.
The next player of note are the stock brokers. They are registered in two categories: As stockbroking firms and individual stock brokers. The stock brokers are the ones trained and authorised  to buy and sell stocks and shares at the Nigerian stock exchange. Stock broking firms are the ones who employ them to do this on behalf of clients and through whom new issues  are offered to the public.

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