SOME USEFUL ADVICE FOR NEW & SMALL INVESTORS

1. Best Way To Start:
Though I don't know how much you want to start with, but as a new or small investor, it is better to start in a way that will minimize cost to you. I will advice you to start with public offers. In this way, you will not pay commision to anybody. Another thing, it will be easy for you to manage. If your portfolio grows then you can start buying through the secondary market.
2. Buying Strategy: If you are saving and investing i.e. buying on regular intervals, say monthly, quarterly or yearly for long term. Then it will not be easy for you to be buying shares of different companies each time you want to invest. If you continue like that, in five to ten years time you will not be able to monitor the perfomances of the numerous companies. There is nothing wrong in buying more shares of a company you already had in your portfolio e.g. I bought fidelity bank in 2005 at N2.50 and bought it again in 2007 at N8. I also bought oceanic bank in 2004 at N5.30 and bought it again in 2006 at N16.50. So there is nothing wrong in buying more shares of companies you already own their shares. It will even help you to minimize cost.
3. Bank Account: As an investor in the nigeria stock market, you are required to maintain a current account in the event you want to sell your shares or receive a dividend warrant. If you sell your shares, you will only be paid with a cheque which you can only pay in a current account, the same for dividend warrant. To save cost, you can now pay in cheques into special savings account like ESA A/C BY OCEANIC BANK, IPSA A/C BY INTERCONTINENTAL BANK. Other banks has similar accounts with different names. Just ask and compare their terms. With this savings a/c, you will not pay C.O.T and the opening procedure is not cumbersome as current a/c.
4. Regular Signature: In a situation, your share certificate is misplaced, missing or with incorrect information, the only remedy is to go to the register representing that company. The first thing they will request from you is your signature. And the moment it is not the same with the one in their computer, they will request bankers confirmation.You have to understand that bank confirmation cost between N2500 to N5000 depending on the bank.As a small investor, such an amount will not be easy for you. There were cases of people paying N5000 for an investment that worths N5000. Please, to avoid such, make sure you signed that signature you are used to. Also always photocopy the application forms of any public offer or private placement you buy. You should do the same with CSCS form. With photocopies you can easily refer back in case you are not sure. If you don't have a regular signature, it is better for you to use thumb print and initials. It is better than paying N5000. You can also consult a stock broker for more advice.