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Frequently Asked Question

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1.        What are stocks and shares?

Stocks and Shares represent ownership interest in a business.

2.        Who is an Investor?

A person or an institution who use his savings or borrowings to buy securities.

3.        How are stocks and share bought on The Stock Exchange?

Stock and Shares are bought and sold on The Nigerian Stock Exchange through Dealing Members known as Stockbrokers.

4.        Are shares transferrable?

Yes, The investor should get across to CAPITAL ASSETS LTD. Even in the case of a deceased shareholder shares can be transferred to his children or sold as the case may be.

5.        How long does it take for my certificates to get verified?

Once all documents required for verification are provided, your certificates could be verified within two weeks of submission to us. Although certificates may sometimes take longer to verify.

6.        How do I deposit my certificates and what happens after?

You can only get your share certificates verified through a stock broking firm. With us, once you will fill in/sign forms including the Transfer Form and the Know Your Client (KYC) Form. We will process the certificate(s) and take them to the Registrar, who will verify them and then send information to the CSCS about the verification. The CSCS will complete the transaction and credit your CSCS Account accordingly.

7.        Why should I open an account with CAPITAL ASSETS LTD?

CAPITAL ASSETS LTD is well equipped and prepared to give you services that will meet and exceed your investment needs. Having taken the time to understand investors’ needs, we have built strong relationships, and would be pleased to bring our extensive experience to bear in your transactions with us.

We are one of the most reliable stock broking firms in Nigeria, and CAPITAL ASSETS LTD parades excellent professionals with proven skills and integrity, and will verify your certificates within the shortest possible time as well as carry out your sale and purchase mandates as promptly as possible. Our Account Opening process is straight forward and our Relationship Officers are always available to give you needed support and assistance.

In addition, CAPITAL ASSETS LTD possesses strong research capabilities and excellent Asset Management

8.        What are the charges when buying or selling stocks?

A: Cost relating to ‘BUY’ Transactions:

B: Cost relating to ‘SELL’ Transactions:

9.        During cross deals in CAPITAL ASSETS LTD, why do the buyers/sellers pay charges?

Cross Deals Transactions involve trading on the floor of the Nigerian Stock Exchange and any transaction done on the floor of the NSE attracts charges.

10.      What do I stand to benefit from opening an account with CAPITAL ASSETS LTD?

Opening an account with CAPITAL ASSETS LTD comes with lots of benefits. You will have the privilege of having your account managed by the best professionals in the Industry; you will enjoy the premium and excellent services we are well known for; you will enjoy quality research information regularly; you will be able to subscribe to our daily and weekly reports. The benefits are endless actually!

11.      Why do I need Banker’s Confirmation?

Banker’s Confirmation is needed when the Registrar cannot verify a client’s signature on the Transfer Form sent to them with the sample they have stored in their database. Banker’s Confirmation will also be needed if the Registrar does not have a sample signature for the client.

With a Banker’s Confirmation, your bank is confirming to the Registrar that they know you and that you have an active account with them. They are also confirming to the Registrar that the sample signature you have signed on the Banker’s Confirmation is indeed your true signature.

12.      Why do I need to write to the Registrars for my own missing certificates and not CAPITAL ASSETS LTD?

When making any request to the Registrars for missing certificates, you are doing it through CAPITAL ASSETS LTD and your letter should be addressed to the Registrar directly, but submitted to CAPITAL ASSETS LTD for processing. CAPITAL ASSETS LTD will then write a cover letter and take the documents to the Registrars on your behalf. We will follow up with the Registrars and update you with the outcome as soon as we have feedback.

13.      What are the returns from investing in shares?

Returns from investing in shares are:

  • Capital appreciation
  • Dividend Income: - A slice of the company's profit in proportion to the units of shares held.
  • "Free Share" - Bonus.
  • Saving Strategy for the future
  • Leveraging Benefits i.e. you can use it to burrow in the future.
  • Emergency backup i.e. as a safeguard for your financial future.
  • Right to attend Shareholders meeting and company's annual general meeting (AGM)
  • Right to vote during AGMs

14.      What does “XSC” means?

It is a financial expression for “without the scrip”. A stock that is purchased during the without the scrip period will not earn a scrip declared in that period for its new owner.

15.      What is the CSCS?

CSCS is an acronym for the Central Securities and Clearing System Limited, the Company that provides central clearing services for dealers that trade on The Nigerian Stock Exchange. It was incorporated in 1997 and has since provided central clearing services for investments in The Nigerian Stock Exchange. Central clearing refers to a process whereby the registration, clearing, settlement and delivery processes are centralized thereby reducing the cost and time involved in processing trades on the stock exchange

16.      What is the relationship between The NSE and CSCS?

CSCS is a subsidiary of the NSE, but an independent company. All shares to be traded on The NSE floors must be deposited with the CSCS while CSCS does clearing and settlement of trades for The NSE

17.      What other services do CAPITAL ASSETS LTD provide?

  • We act as your Portfolio Managers and also give professional advice on stock selections.
  • We act as issuing House.

18.      What documentations should i expect to get when i deal with CAPITAL ASSETS LTD ?

It varies depending on the type of service, but the most basic are the following:

  • A Receipt (for your cash or cheque)
  • Stock transactions ; Contract Note
  • A CSCS Statement (for your detail stock position and you can also request for it independently as often as you desire for a fee payment of NGN100 only).
  • A regular statement of your account .