Stock Market Investment

Stock Market Investment Tips 
 
STOCK MARKET INVESTMENT TIPS OVERVIEW
  Stock Market activities are generally regarded as a means of wealth acquisition. It is indeed a means of preparing for the rainy days or to plan for the future. Before the recent historic economic meltdown, there are great numbers of people who sit at the comfort of their homes and make money by investing in the capital market. This can be done by buying and selling a particular stock to make profit. Some people have gone beyond the shore of their continent and are big player in other continent/ countries stock market. As a man thinks in his heart so is he, a man is limited by his own reality of what is possible financially, except he goes beyond his own reality of what is possible. Investing in quoted companies automatically makes you an individual (small investor) or an organisation (institutional investor) a part owner of the company and you are entitled to so many privileges as a shareholder of a company. A Stock Exchange is a platform where one can buy and sell shares, stocks, bonds via a trading floor or an electronic device.
  BASIC TERMINOLOGIES IN STOCK TRADING A Share is the smallest unit of ownership in a company. If you own a share of a company, you are a part owner of the company. These companies are public liability companies which in most cases are Nigeria Stock Exchange.  
TYPES OF SHARE  
Common/Ordinary shares: This are shares in which dividend are paid. The owners have voting right during the company’s annual general meeting. They share in the company’s gains and losses Preference Shares: They are shares with stipulated returns rate or dividends. They do not have voting right and they have the first call on dividend over ordinary shares.  
Convertible Preference Shares: These are preference shares that can be converted to ordinary shares at a stipulated date and price Share Price: This is the cost of obtaining a unit of a share. Share price could be Public offer share price or Market value share price.
 Stock Exchange: This is a place where transactions are made by stock broker firms who deals on shares of quoted company’s for individuals and clients that wants to invest in them. These transactions are being perfected by the brokers who work for these registered stock broking firm.
 Share Certificate: It is a paper document which indicates part ownership of company or a prove of ownership of shares of a company.
 Shareholder: A person who has a share of a company either as an individual or an entity.
  Stock List: This is a list of shares of quoted companies listed on the exchange. A comprehensive stock list can be found on daily news paper. In the Nigerian context, Some daily newspaper in Nigeria publish the Daily Official Trading summary of the Nigeria Stock Exchange The format includes names of quoted companies, public quotation price, current market price, information on dividend, business done daily, the price and quantity, the highest and lowest price of the share in a year, Earning per share (EPS) and price earning ratio (PER) Share: This is the name of Security Current Market Price: This means the prevailing market price or the ruling price.
 Ex-Div/ Ex-Scrip: This is the price after payment of dividend and after issuing bonus shares Business Done: This means the price, date, and quantity at which a share was last traded Buy: The price at which the investor/ buyer is prepared to buy. Sell: The price at which the share is offered for sale.
 Year High: The Highest Price attained by the share or stock during the year Year Low: The lowest price attained by the share or stock during the year.
 EPS: Earning per share indicates how much income after tax a unit of share has generated.
 P/E: The price/earning ratio is the ratio of the price to the earnings, indicating how long it would take an investor to recoup his investment if he/ she were to buy the stock at the current price to earning ratio. For more information on the Daily Official List of the Nigerian Stock Exchange visit the exchange website on www.nigerianstockexchange.com In Nigeria the index is a measure of the magnitude and direction of general price movement on the stock market. It is a singular factor that captures the aggregate price movement i.e. the gain and loss of companies.
The Nigerian Stock Market index was formed in January 2nd 1984. The index measures the profitability of the capital market. In Nigeria the index is called the All Share Index. If the index is going up the government will be expecting more taxation because the companies are doing well. Sectorial Index have be developed for varioue sectors of the economy like the banking, insurance e.t.c. However in other parts of the world the index are referred as follows Hong Kong = Hang Seng Japan = Nickei Average Germany = Dax London = FT 100 or FTSE US = NASDAQ US = DON JONES = SP 500.
 Trading Share: This is the act of making money in the capital market by buying and selling of shares on a short term or medium basis. In trading the major aim of the investor is capital appreciation and not sharing of profit or declaration of bonus. It is taking advantage of stock prices.

 THREE (3) BASIC ORIENTATIONS BEFORE STOCK TRADING
1.) GREED Being greedy is caused by the inability of the investor to have a good investment objective. The things to be considered while taking investment objective decision are the source of the fund. The duration the fund invested can be allowed to stay in the investor’s portfolio before divesting or offloading the investment. Generally we recommend a medium to long term investment objective for capital market investment. The market is not a casino and investors are not expected to gamble in the market or invest in the market emotionally based on the sentiment that the company or the market will always provide free money 2.) FEAR Investors should not be pessimistic and fearful while trying to invest in the market. Though the act of fear is inevitable, investor should be optimistic about their investment and be responsible about their actions. The investor should try as much as to cut losses slowly and take gains steadily. Scared money never wins in the market.
 3.) RISK ORIENTED It is a risk not to take a risk. Being risk orientated gets one ready for the market. Though not all risk culminates into success but all success has an amount of risk. It is better to understand the trading process, adjust the process to suit you risk apathy and orientation Should you desire to invest in the real estate as an enterprenuer and also to learn more on how to tap into the real estate business in nigeria visit http://therealestateentrepreneur.blogspot.com
Also should you desire to study in Europe for free tuition visit
http://freetuitionuniversitiesineurope.blogspot.com
Lastly do your want to plan your future using life assurance polices that are investment packed. visit
http://lifeassurancepolicies.blogspot.com

Making Money Online has never been made this easy. Do you know you can make real cash online just by the click of a button. Yes just by the click of a button. Even my Grandma in the village can do this. Did i just say my Grandma......? It's a pity i lost mine a few years ago. May her gentle soul rest in peace.
For more on how you can start making real money online , click this link to get started.
This is good for you as a Student
Click here