Introduction

It is with mixed blessings and a heart of gratitude to God Almighty that I introduce you to the stock market; where the rich make their millions. Once again, you are welcome.

Investment is very important in the life of every human who wants to be balanced in life; retire earlier than expected, own a fortune etc. you might have heard or come across cases of some individuals who were relieved of one financial problem or the other through their investment.

There are many ways to invest your money of which some are:

• The stock market 
• Real estate 
• Bond 
• Mutual fund 
• Money market etc.

Our discussion shall focus mainly on the stock market. The stock market has a wild range of money making opportunities wrapped up in it waiting to be exploited. These we shall discuss in pages ahead.

The Nigerian Stock Exchange

Due to the findings of many researchers, stock analysts, institutional investors, fund managers etc. the Nigerian stock exchange has been defined in many ways. My aim is for you to understand what the name simply means. Going by the name; “the Nigerian stock market”. It is a place where units of shares of companies in Nigeria (or branch in Nigeria) are being exchanged for money.

Stock investment

Stock investment really means giving your money to a company and holding some part of that company (shares) in view of making profit.

The profit I mean is your own profit based on how good the company you invested in does after some time.

Stock and shares

These words; stock and shares, are used interchangeably to mean the same thing. But it should be noted here that all shares are stocks but not all stocks are shares.

Shares: unit(s) of a company held by you according to the amount you lent the company. If the company is making profit and their price is increasing on the exchange, you also are making profit. There is no time agreement between you and the company. You can sell at any time and make gain/loss according to the price the stock is going at the exchange.

Stocks: buying in bulk. e.g. 60%, 50%, of the entire number of shares of the company at an agreed return and an agreed time.