MTN listed its shares for sale at the Nigerian Stock Exchange (NSE) on Thursday. This makes it possible for anyone who has a trading account with a local brokerage to buy a stake in the telecoms giant and get a share of their earnings.
But how do you get some of those shares for yourself?
You may find it difficult to wrap your head around the whole thing if you’ve never been involved with trading shares on the NSE. For the uninitiated, the whole talk of listings, bourses, and brokers may sound like alien-speak. What ultimately matters to you is that investments yield returns and you want to get as much of those returns as you possibly can.
This article lets you into the process of acquiring MTN shares- or any other valuable company listed on the NSE.
The Steps You Should Take
Let’s say you have no idea how all this works. How do you proceed?
1. Contact a Stock Broker
First, you need to have a brokerage account to trade shares on the NSE. You can open one with a stockbroker. The Nigerian Stock Exchange’s website has a list of stockbrokers registered with it. You can find it here.
But if you’re in a hurry, here’s a much shorter list of stockbroking companies you could get in touch with:
Note: You’re probably not going to be trading shares yourself. In most cases, this is done by the stockbroker. They understand how the stock market works, and it’s their job to buy and sell shares on it. They’ll also get a commission on the transactions they carry out on your behalf.
2. Open a Trading Account
When you’re in touch with the stockbroker you’ve chosen, request that they open a trading account on your behalf. They will send you a copy of the CSCS (Central Securities Clearing System) Account Opening Form. You will also provide details such as your banking information, personal ID, and address.
After you’re done with filling the form, dispatch them to your stockbroker, along with other relevant documents (such as a copy of your ID, passport, and utility bill). Your CSCS account number will be sent to you.
Fund your account when it’s opened, so that you’ll be able to begin trading.
3. Start Trading
Place your order for shares through your stockbroker. Your decision will be based on specific cues, e.g. what the prices are, how they’re likely to change in the short and longer term, and the state of the company they represent, among other things. This article explains what to look out for when you’re thinking about buying shares.
There’s the option of buying the shares yourself if you have an online account with your brokerage firm. In this case, you will be able to purchase shares if there’s anyone willing to accept a bid you’ve placed at the price you want.
When you do succeed at buying the shares (whether through your self-managed online account or your stockbroker), you will receive an email confirming that you now own shares in the company (in this case, MTN Nigeria).
Temper Your Expectations
It’s worth pointing out that shares in MTN may not be easy to come by at this time, because the private holders may be unwilling to sell them at the current price. Perhaps there will be more available for purchase when the company announces an Initial Public Offering (IPO).
Whatever the current situation is, we can be certain that there will be considerable interest in getting hold of those shares for a while yet.
Featured image source: Business Hilights