Investing in stocks is a fantastic way to build wealth over time. With the advent of today’s technology, it has become more accessible than ever before. In this guide, we will walk you through the process of buying shares through social media platforms in Nigeria.
Understanding the basics
Before you start buying shares, it is important to understand the basics. Companies across sectors like telecoms, banking, and consumer goods are listed on the Nigerian Exchange Group (NGZ). These companies range in value and market share, offering various entry points for new investors.
Furthermore, many traders today want to know how to buy shares on Facebook in Nigeria. However, since these platforms do not offer such options, we have a better alternative – investment apps.
How to buy shares through the primary offer app
A recommended method to buy shares is through investment apps offered by various financial institutions. Here is a step-by-step guide for Nigerian investors.
Setting up an account
After downloading the Primary Offer App, you must register by entering your Bank Verification Number (BVN) and date of birth. After registration, you will receive a verification code via email. Once the code is inputted into the app, you can start trading.
On the app, you will find a list of public offers on your dashboard. Click on the offer in which you are interested to read more and proceed to buy after reading and accepting the terms and conditions.
You will be asked to indicate the number of units you would like to buy, with a minimum usually set by the company. The app will display the total cost for the units selected.
Other ways to buy shares
While the digital way of purchasing shares through investment apps is highly convenient and user-friendly, traditional methods remain viable. Shares can be bought through licensed receiving agents. These agents include issuing houses, stockbrokers, and banks.
Receiving agents are authorized entities that facilitate buying and selling shares. They are typically involved in large public offerings. These agents are essential in ensuring transactions are carried out smoothly and securely.
Issuing houses, stockbrokers, and banks act as receiving agents and have the authority to buy and sell shares. You can visit their offices or contact them directly for assistance in acquiring shares.
Why invest in shares?
Investing in shares allows you to participate in a company’s growth and potentially reap financial rewards. As a shareholder, you may receive dividends, a portion of the company’s profits. Shares also offer capital gains potential, meaning your investment can increase in value over time.
This dual-earning possibility—dividends and capital appreciation—makes shares an attractive investment option.
However, the stock market can fluctuate, and the value of shares can go down and up. Therefore, investing in shares should be considered a long-term strategy and part of a diversified investment portfolio to manage risk.
Investing in stocks is a strategic move to build wealth. However, understanding the company in which you are investing is crucial. Companies offer promising investment opportunities with their market leadership and growth prospects. Nevertheless, remember that all investments carry risks, and one should only invest money they can afford to lose.