Brief introduction to the Nigerian Stock Exchange Market (NSE). Brought to you by Norrenberger Financial Group. The Nigerian Stock Exchange (NSE) was established in 1960 as the Lagos Stock Exchange. In 1977, its name was changed from the Lagos Stock Exchange to the Nigerian Stock Exchange. It's Activities are very much similar to those of The New York Stock Exchange (NYSE).

1. NIGERIAN STOCK
EXCHANGE
Presented by
OLUCHI OKOH

2. CONTENTS
• 1) Definition of Stock Exchange
• 2) Features of Stock Exchange
• 3) Function
• 4) Broker and Jobber
• 5) Differences
• 6) Speculation and Speculator
• 7) The role of stock market
• 8) Conclusion

3. WHAT IS STOCK EXCHANGE?
• An organized and regulated financial market where stock brokers
and traders can buy and sell securities, such as shares of stock,
bonds and other financial instruments.
• The Nigerian Stock Exchange (NSE) was established in 1960 as
the Lagos Stock Exchange. In 1977, its name was changed from
the Lagos Stock Exchange to the Nigerian Stock Exchange. As at
October 31, 2018, it has 169 listed companies with a total
market capitalization of over 11.9 trillion.₦ All listings are
included in the Nigerian Stock Exchange All Shares index. In
terms of market capitalization, the Nigerian Stock Exchange is
the third largest stock exchange in Africa.

4. HISTOry
• The Nigerian Stock Exchange was founded in 1960 as the Lagos Stock
Exchange, on September 15, 1960, the stock exchange council was
inaugurated. Operations began officially on August 25, 1961 with 19
securities listed for trading but informal operations had commenced
earlier in June, 1961.
• Operations were initially conducted inside the Central Bank building with
the exchange having four firms as market dealers: Inlaks, John Holt, C.T.
Bowring and ICON (Investment Company of Nigeria). The volume for
August, 1961, was about 80,500 pounds and it rose to about 250,000
pounds in September of the same year with the bulk of the investments in
government securities. In December 1977 it became known as The Nigerian
Stock Exchange, with branches established in some of the major
commercial cities of the country.

5. OPErATION
• The Nigerian Stock Exchange has been operating an Automated Trading System
(ATS) since April 27, 1999, with dealers trading through a network of computers
connected to a server. The ATS has facility for remote trading and surveillance.
Consequently, many of the dealing members trade online from their offices in
Lagos and from all the thirteen branches across the country. The Exchange is in
the process of establishing more branches for online real time trading. Trading
on the Exchange starts at 9.30 a.m. every business day and closes at 2.30 p.m.
• In order to encourage foreign investment into Nigeria, the government has
abolished legislation preventing the flow of foreign capital into the country. This
has allowed foreign brokers to enlist as dealers on the Nigerian Stock Exchange,
and investors of any nationality are free to invest. Nigerian companies are also
allowed multiple and cross border listings on foreign markets.
• On July 7, 2017, the Nigerian Stock Exchange suspended 17 companies for failure
to adhere to regulatory provisions of the law on corporate governance and
extant post-listing guidelines.

6. PrICING
• The Nigerian Capital Market was deregulated in 1993.
Consequently, prices of new issues are determined by
issuing houses and stockbrokers, while on the secondary
market prices are made by stockbrokers only.

7. Regulation
• The NSE is regulated by the Securities and Exchange
Commission, which has the mandate of Surveillance over the
exchange to forestall breaches of market rules and to deter
and detect unfair manipulations and trading practices. The
Exchange has an automated trading System. Data on listed
companies' performances are published daily, weekly,
monthly, quarterly and annually.
• Transactions on The Exchange are regulated by The Nigerian
Stock Exchange, as a self-regulatory organization (SRO), and
the Securities & Exchange Commission (SEC) – apex regulator,
which administers the Investments & Securities Act of 2007.

8. the all-ShaRe index
• The Exchange maintains an All-Share Index formulated in January 1984
(January 3, 1984 = 100). Only common stocks (ordinary shares) are included
in the computation of the index. The index is value-weighted and is
computed daily. The highest value of 66,371.20 was recorded on March 3,
2008. Also, The Exchange has introduced the NSE-30 Index, which is a
sample-based capitalization-weighted index plus four sectorial indices.
• Similarly, five sectoral indices have been introduced to complement existing
indices. These are NSE-Food/Beverages Index, (Later renamed NSE –
Consumer Goods Index) NSE Banking Index, NSE Insurance Index, NSE
Industrial Index and NSE Oil/Gas Index.

9. aSSociationS
• The Nigerian Exchange is a member of the World
Federation of Exchanges (FIBV). It is also an
observer at meetings of International Organization
of Securities Commissions (IOSCO), and a
foundation member of the African Stock
Exchanges Association (ASEA). On 31 October
2013, it joined the United Nation's Sustainable
Stock Exchanges (SSE) initiative.

10. FeatuReS oF StocK exchange
 It is an organized market
 It is a securities market
 It is an important constituent of capital market i.e., market for
long-term finance
 It is a voluntary association of persons desirous of dealing in
securities
 Stock exchange is a voluntary association, its membership is not
open to everybody

11. iMPoRtant Function oF StocK exchange
 Provide central and convenient meeting places for sellers and buyer
of securities
 Increase the marketability and liquidity of securities
 Contribute to stability of prices of securities
 Equalization of price of securities
 Smoothen price movement
 Help the investors to know the worth of their holdings
 Promote the habit of saving and investment
 Help capital formation
 Help companies and government to raise funds from the investors
 Provide forecasting service

12. BRoKeR and JoBBeR
 BROKER: A broker in a stock exchange, is a
commission agent who transacts business in securities
on behalf of non members.
 JOBBER: He deals with brokers who are engaged
with the investors and sells to members who are
operating on the stock exchange as broker.

13. DIFFERENCES BETWEEN A JOBBER AND A BROKER
JOBBER
 independent dealer in securities,
purchasing or selling securities on
his own account
 deals only with the brokers ,does
not deal with the general public
 earns profit from his operations
 specializes in certain group of
securities
BROKER
 deals with the jobber on
behalf of his clients.
 is merely an agent, buying or
selling securities on behalf of
his clients
 gets only commission for
his dealings
 deals in all types of
securities

14. SPECULATION AND SPECULATOR
 SPECULATION : It is the transaction of members to buy or sell
securities on stock exchange with a view to make profits to anticipated
raise or fall in price of securities.
 SPECULATOR :. A person who trades derivatives, commodities, bonds,
equities or currencies with a higher-than-average risk in return for a
higher-than-average profit potential. Speculators take large risks,
especially with respect to anticipating future price movements, in the
hope of making quick, large gains.
 BULL
 BEAR
 STAG
 LAME DUCK

15. BULL
He is speculator who expects the future raise in price of
securities he buys the securities to sell them at future at
the higher price.
The bull tends to throw its victims up in the air through its
horns.

16. BEAR
He is speculator who
expects future fall in
prices , he does an
agreement to sell
securities at future date
at the present market rate
The bear tends to stamp
its victims down to earth
through its paws

17. STAG
He is not a genuine
investor because , he
sells the alloted
securities at the
premium and makes
profit.
He creates an artificial
rise in prices of new
shares and makes
profits.

18. LAME DUCK
He is speculator when the
bear operator finds it
difficult to deliver the
securities to the consumer on
a particular day as agreed
upon.
He struggles as a lame duck
in fullfilling his commitment

19. The role of The sTock markeT
• Facilitates capital-raising for business growth and dynamism
• Mobilizes savings for investment
• Promotes Corporate Governance
• Facilitates government financing for developmental projects
• Enhances Public-Private-Partnership (PPP) initiatives ▪
INFRASTRUCTURE
• Empowers populace through financial literacy programmes and
CSR initiatives
• Permits efficiency in capital flows

20. conclusion
EASY WAY TO EARN MONEY, EASY WAY TO LOSE MONEY
Stock prices change everyday by market forces. By this we mean that
share prices change because of supply and demand. Conversely, if more people
wanted to sell a stock than buy it, there would be greater supply than demand,
and the price would fall.
Negative news will normally cause individuals to sell stocks. Bad earning reports,
poor corporate governance, economic and political uncertainty, as well as
unexpected, unfortunate occurrences will translate to selling pressure and a
decrease in stock price.
Positive news will normally cause individuals to buy stocks. Good earnings
reports, increased corporate governance, new products and acquisitions, as well
as positive overall economic and political indicators, translate into buying
pressure and an increase in stock price.

21. keeP inVesTinG
Danke Dir
Thank You