BENEFITS OF INVESTING IN SHARES

DIVIDEND

Investors normally receive annual dividend from the company invested in.

BONUS SHARES

Companies sometimes utilize part of their retained profit to issue bonus shares to their shareholders. This may be in addition to dividends.

CAPITAL APPRECIATION

Gains often occur as the price of a stock rise above the purchase cost. An investor may therefore take profit by selling the shares when the price has appreciated sufficiently. Experience has shown that, in our economy, the combined effect of dividend, bonus shares and capital appreciation offer a higher return on investment than bank deposit and real estate.

RIGHTS ISSUE

Existing shareholders have the advantage of buying additional shares of their  company at a discount price  through Rights Issue.

COLLATERAL

Share certificates or stocks in the CSCS stock position statement can be used as collateral to obtain loan facility in banks.

LIQUIDITY

Shareholders have the opportunity to convert their investment to cash at a faster rate than for property investment, through sales of shares on the floor of the Nigerian Stock Exchange.

AGM

Shareholders have a right to attend and participate in decision making at their companies’ Annual General Meetings. A shareholder may even aspire to become a Director through election at the AGM.