WHY BUYING STOCKS IS IMPORTANT!!

Buying stocks can be a really smart move for your future and you should consider buying some. Think of it like this, when you buy a stock, you’re automatically buying a tiny piece of a company. Whenever the company does well, the value of your piece i.e. your stock will go up, and you could make money. Over time, the stock market has gone up, which means that generally, the stocks have increased in value. Investing in stocks can help you build a long-term wealth. Investing in stocks can be a way to save for retirement or some other big financial goals. Some stocks pay dividends, which are the regular payments to shareholders, which even gives more income. Purchasing stocks can also help plan for the future because, money kept without investing it can make it lose value due to inflation, but stocks can help your money grow faster overtime.

Buying stocks mostly encourages saving and patience, which makes investors learn businesses and the economy work, which helps them make better financial decisions.

You might be wondering why companies ask people to invest by purchasing stocks, the reason is because companies use money from investors to grow, create jobs and improve their products and services.

If you want to purchase stocks in Nigeria as a beginner, you can start by using beginner friendly investment apps. You need a broker to buy stocks on the Nigerian Exchange. You could choose from

• Trove

• Chaka

• Stanbic IBTC Stockbrokers

On these apps, you’ll find various companies you can buy stocks from, and they are.

1. DANGCEM- Dangote Cement Plc

2. MTNN - MTN Nigeria Communication Plc

3. GTCO - Guaranty Trust Holding Company Plc

4. ZENITHBANK - Zenith Bank Plc

5. BUAFOODS - BUA Foods Plc

Well, as they say, there’s no business or investment without risks, so I suggest that as a beginner, you make some research before buying, the stock market is unpredictable, because even popular stocks can go up or down in price. You need to understand the companies you are investing in, so you do not put all your eggs in one basket.

Platforms like Trove and Chaka enables you to buy stocks with small amounts. You don’t need a lot of money, as many beginners can start with N10,000 - N50,000 and can then grow gradually.