The Nigerian Stock Exchange (NSE) operates a fair, orderly and transparent market that brings together the best of African enterprises and approximately 5 million investors from around the global.
To become an investor, an individual (or institution) must select a stockbroker and open an account with the Central Securities Clearing System Plc. (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 (NSE), and (ii) is registered with the Securities and Exchange Commission (SEC).
In selecting a suitable broker to represent your interests as an investor, you should confirm the broker’s status with both The NSE and SEC. The NSE also recommends investors meet with the broker-dealer firm to determine whether the services they offer match their specific needs. Stockbrokers and custodians have a fiduciary responsibility to their clients which implies management and safekeeping.