The Nigerian Stock Exchange (NSE) has provided this information as an educational service to investors. The information provided is not a legal interpretation of regulator policy. Investors who have questions about the meaning or application of any of the information provided should consult with a certified and licensed stockbroker, investment advisor or financial advisor.
To become an investor, an individual (or institution) must select a stockbroker and open an account with the Central Securities Clearing System Ltd. (CSCS). A stockbroker is an appointed agent who is authorized to execute, buy or sell instructions on an investor’s account, while CSCS issues central securities identification numbers to investors required for the clearing, delivery and settlement of transactions.
A stockbroker, in this sense, does not refer to an individual, but to a broker-dealer firm that is (i) a dealing member of The Nigerian Stock Exchange, and (ii) is registered with the Securities and Exchange Commission (SEC). In selecting a suitable broker to represent your interests, an investor should confirm the broker's status with both the NSE and the SEC. The NSE also recommends investors meet with the broker-dealer firm to determine whether the services they offer match your specific needs.
Stockbrokers and custodians have a fiduciary responsibility to their clients which implies management and safekeeping.
For more information on terms commonly used in the capital market and by investors all over the world, please refer to the Glossary of Terms we have provided for easy download.