Frequently Asked Questions

Frequently asked questions about the Stock Market.

What is the NSE and what are its functions?

The NSE is an acronym that stands for the Nigerian Stock Exchange. It is a secondary market where the buyers and sellers meet to trade the shares of various Companies quoted on the Nigerian Stock Exchange.

The NSE provides a convenient and organized marketplace where buyers and sellers can easily match and execute their trade orders through their appointed stockbrokers.

Who is a stockbroker and how do I go about selecting one?

A stockbroker is an appointed agent of an investor authorized to execute buy or sell instructions on his principals account. A stockbroker in this sense does not refer to an individual but to a broker/dealer firm that is a dealing member of the Nigerian Stock Exchange and registered with the Securities & Exchange Commission.

Every stock brokering firm must be registered with both the Securities and Exchange Commission (SEC) and the NSE. In selecting a suitable broker to represent their interests, investors should confirm the broker's status with both organizations. In addition, the investor should meet with the firms management to determine whether their services match the investors needs.

Is STANWAL SECURITIES LIMITED a broker/dealer firm?

Yes! STANWAL SECURITIES LIMITED is a dealing member of the Nigerian Stock Exchange and is duly registered with the Securities & Exchange Commission. The Company has operated in this capacity for the past twelve years and currently provides its services to a client base of approximately 21,000 individual and corporate investors (local & international).

How do I open an account with your Company and operate it from the United States/ United Kingdom/ any foreign nation?

First you must obtain and complete an account opening form. The form is available for download on this website. You can also fill out the form online and choose to submit it electronically. The completed form will enable Stanwal to open an investor account for you with the Central Securities Clearing System (CSCS). This account will allow you to trade on the Nigerian Stock Exchange i.e. Buy/ sell any of the quoted securities that are being traded on the exchange daily. All the information on the form should be filled out to the best of your ability. For those who lack mailing addresses in Nigeria or who simply prefer it - Our Corporate mailing address may be utilized. It is as follows: C/O STANWAL SECURITIES LIMITED, P.O. BOX 71203, VICTORIA ISLAND, LAGOS, NIGERIA.

What is CSCS and what role does the organization play in the Nigerian Capital Markets?

CSCS is an acronym that stands for the Central Securities Clearing System. CSCS is a stock depository and clearing institution. It is responsible for opening investor accounts for individual and corporate bodies desirous of trading on the NSE. It warehouses the shares of all investors who trade on the NSE and serves to expedite trading and settlement issues between the various broker/dealer firms.

In layman terms, CSCS is that crucial part of the NSE that ensures smooth and seamless trading over an electronic platform by the various broker/dealers.

How can I get in contact with STANWAL SECURITIES LIMITED?

This may be achieved in several ways.

Firstly, all customers can call our offices from Mon - Fri, 9:00am to 5:00pm (GMT)

Our contact details can be found on the Contact page.

The numbers are as follows:

Customer Service: 01-7618081
Verification Dept:
  01-2133899

These numbers may be used for general customer inquiries and to address minor issues. In case of a significant problem, please use the numbers provided below and a senior manager will be available to swiftly resolve your problems.

Management: 01-7938318, 01-7618085, 01-7618083, 01-7618082

Secondly, you can email us at the following address; customercare@stanwal.com

Finally, you can write us at the address provided below:

C/O THE MANAGING DIRECTOR
STANWAL SECURITIES LIMITED
P.O. BOX 71203,
VICTORIA ISLAND,
LAGOS,
NIGERIA

How can I start trading today?

Simple! First you must fill out an account opening form with STANWAL SECURITIES LIMITED. We will send the details to the CSCS and obtain an investor account number for you. Through this account number you can buy and sell stocks on the floor of the NSE.

It typically takes between 24 and 48 hours for your CSCS account to be opened. At the same time, a Stanwal brokerage account will be opened for the investor. Once this has been achieved, all an investor has to do is fund his Stanwal Brokerage Account and begin selecting his stocks.

How do I fund my account with Stanwal?

Very Simple! Funds slated for the purchase of shares may be deposited into STANWAL SECURITIES LIMITED Nigerian Naira, US $ Dollar, Euro or British Accounts. The wiring instructions are included below. All clients can wire funds into our domestic and foreign currency accounts. Where appropriate, the funds will be changed into Nigerian Naira at the prevailing CBN rates.

STANWAL SECURITIES LIMITED

WIRING INSTRUCTIONS FOR DOMESTIC AND OVERSEAS CLIENTS

WIRING TO STANWAL SECURITIES LIMITED:

Please identify your country of residence or the country you wish the wire to originate from and select accordingly. If you have any questions please do not hesitate to contact us directly. Our contact details are available here.

FOR LOCAL NAIRA TRANSFERS/ DEPOSITS, PLEASE DEPOSIT YOUR FUNDS IN THE NEAREST DIAMOND BANK ACCOUNT & CALL US ON 01-761-8081 or REQUEST AN INTERBANK TRANSFER USING THE FOLLOWING.

BANK OF CHOICE: DIAMOND BANK PLC

BRANCH: MARINA, LAGOS

ACCOUNT TYPE: Nigerian Naira A/c

ACCOUNT NO.: 000193945

(Please retain your deposit slip, you will be asked for the details on the deposit slip)



FOR USA TRANSFERS

BANK OF CHOICE: DIAMOND BANK PLC

ACCOUNT TYPE: US $ Account

ACCOUNT NO (In Nigeria).: 0001959355

ABA ROUTING NO.: 021-000-089

CORRESPONDING BANK: CITIBANK

DIAMOND BK CORRESPONDING BANK A/C NO.: 36151409

SWIFT CODE: DBLNNGLA



FOR UNITED KINGDOM TRANSFERS

BANK OF CHOICE: DIAMOND BANK PLC

ACCOUNT TYPE: UK Account

ACCOUNT NO.: 0001961844

SORT CODE.: 185-008

CORRESPONDING BANK: CITIBANK

CORRESPONDING BANK ACCOUNT NO.: 10390100

SWIFT CODE: DBLNNGLA

What types of products/ investment vehicles can your firm offer investors and what are the rates of return.

For a full list of products and services please see our  services page.

Can I buy shares via a Bank?

Yes! Please note only Public Offers. To buy shares traded on the exchange you must use a stockbroker. Consequently, we recommend that you carry out all your capital market transactions through a registered stockbroker.

What is the brokerage fee structure applicable in the Federal Republic of Nigeria

The typical brokerage fee structure may be observed here.

What is Verification?

Verification is simply the process of confirming ownership of shares, dematerializing share certificates and converting the share certificate from paper form to an electronic form for seamless transmission on the exchange.

Investors may obtain shares in certificate form through a subscription to a public offer or as a bonus issue from a company in which they already have holdings. Either way the shares must be verified before they can be traded on the floor of the Exchange.

Investors should ensure that all their physical certificates are verified and converted into an electronic form as soon as possible. The electronic shares are lodged in the investors CSCS account.

What is a primary market and how does it differ from a secondary market?

A primary market for shares is that in which the investor purchases the shares of a corporation directly from the Company by way of a public offer i.e. IPO, PO, Rights Issue, etc. Shares purchased in the primary market will come to the investor in the form of a physical share certificate. The share certificates will then have to be verified before they can be traded on the Exchange.

A secondary market is one where the shareholders of various quoted companies meet and trade shares amongst themselves through their registered stockbrokers. The presence of secondary markets is what gives stocks their liquidity quality/ characteristic by creating a ready market for the sale of these assets. The Nigerian Stock Exchange is an excellent example of a secondary market.

Wednesday, December 13, 2017

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