A stock is a small piece of a company. If you own a stock, you own part of that business and share in its results.
Companies sell shares to raise money. People buy and sell these shares on a stock market. When the company performs well, the share price can rise. Some companies also pay part of their profit to shareholders as cash, called dividends.
In Nigeria, company shares trade on the Nigerian Exchange Limited through licensed stockbrokers. Your shares are stored electronically by the Central Securities Clearing System. Common Nigerian examples include Dangote Cement and large banks. Globally, shares of major firms trade on markets such as the New York Stock Exchange.
Example: you buy Dangote Cement shares. The company earns strong profit and pays ₦30 per share. You receive cash. If more investors want the stock, its price may also rise. The same idea applies when someone buys shares of a global firm like Apple through an international broker.
To start in Nigeria, open an account with a licensed stockbroker, complete ID checks, receive a CSCS number, deposit money, and buy small amounts of well-known companies first.
Share prices move up and down, and dividends are not certain. A stock is simply ownership in a company that can grow in value and sometimes pay you profit.
