| Investment in shares or equities has become more | | | | 7. Your investment in the stock market should have |
| popular since the conclusion of banking consolidation in | | | | capital appreciation and bonus as your major goal. |
| Nigeria. The Nigerian stock market is rated among the | | | | When choosing a stock consider the bonus and price |
| best in terms of returns around the world and this is | | | | appreciation history of the stock. |
| evidence in the average annual returns on | | | | 8. Know when to enter the market, when to hold |
| investment. | | | | and when to exit from the market. Do not let greed |
| Research shows that forty-two out of four hundred | | | | make burn your fingers. |
| and fifty billionaires in the world got their wealth | | | | 9. Do not sell a stock because the price is falling, but |
| through stocks and shares and most of them | | | | sell because you know why the price is falling. |
| including the first, second and fourth richest man in | | | | 10. Never buy a stock a date after the closure of |
| the world maintain their money through stocks and | | | | register. It will not be a wise thing to do. |
| shares. | | | | 11. Avoid sentimental buying of stocks. In the stock |
| You buy ownership into a company when you | | | | market, you must rule out sentiment if you must |
| purchase the common stocks of the company. This | | | | experience success in your deal. |
| gives you the opportunity of increasing your net | | | | 12. As an investor, you must have both short- term |
| worth through dividends, bonus issues and capital | | | | and long-term investment. |
| appreciation. Every investment decisions are sensitive | | | | 13. You must diversify your investment. By doing this, |
| to interest rates. | | | | you are spreading your risk. |
| WHAT IS A STOCK? | | | | 14. You must have this principle of not buying a stock |
| A stock is a certificate representing a percentage of | | | | you are not willing to hold for a long period. Make |
| ownership in a company and stated as a number of | | | | sure every stock you stake your money in, are |
| shares. The percentage of ownership will obviously | | | | stocks you can hold for a long period. |
| depend upon the number of shares outstanding.So, a | | | | 15. Have exit strategy. Do not be greedy about it. |
| share represent your interest as an investor in a | | | | Exit when you are suppose to. Greed has made |
| company. | | | | many people to have their fingers burnt. |
| 21 TIPS FOR SUCCESSFUL EQUITY INVESTMENT | | | | 16. Always ensure that the investment you are |
| 1. Investigate before you invest. | | | | making at every point will allow sleeping with your |
| 2. Know when to buy. Every stock has its low and | | | | eyes close in the night. Ensure you take calculated |
| high periods. Therefore, you must know when | | | | risk when investing in the market. |
| exactly to buy the stocks and make profit. | | | | 17. Always seek expert advise when investing |
| 3. Know when to sell. You know when to sell the | | | | 18. Never follow the crowd to invest. Be sure the |
| stocks you have bought. Do not hold the stocks | | | | stock you are putting your money into is worth it. It |
| more than necessary. | | | | is not every public offer you should buy. If you must |
| 4. Know how to use the company news in the media | | | | buy, then you must know why you are buying. |
| to buy the best stock or sell off the stocks bought. | | | | 19. Stop dealing with stockbrokers that are not trust |
| 5. You must understand how the Earning per share | | | | worthy. |
| affects stocks positively and negatively. | | | | 20. Learn how to use the company financial report to |
| 6. Do not do blind investment. You should understand | | | | understudy the performance of your stocks. |
| and know why you are investing in the stocks you | | | | 21. Patience is required in the success of equity |
| have chosen to buy. You must be sure of what you | | | | investment. Do not be in a hurry to make quick |
| are doing. | | | | money so as not to have your fingers burnt. |