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2017/2018 NSE FACT BOOK 2017/2018 NSE FACT BOOK
The Performance Documentary of Listed Nigerian Companies The Performance Documentary of Listed Nigerian Companies

The Nigerian Stock Exchange Frequently Asked Ques ons

1. Who owns The Nigerian Stock Exchange? 5. Who is a Stockbroker?
The Nigerian Stock Exchange
The owners of The Nigerian Stock Exchange (NSE) are A stockbroking firm refers to a firm whilst a stockbroker
(NSE) services the largest certain Dealing Member firms i.e. Stockbroking firms, generally refers to person who buys and sells securi es on
ins tu ons and individuals. Individuals who are allowed to behalf of investors for a commission known as a
economy in Africa and is become owners of The Exchange are Nigerian ci zens who “brokerage”. The commission charged is regulated by The
by virtue of their posi on or experience are likely to Exchange and the Securi es and Exchange Commission. It
championing the contribute generally to the achievement of the objec ves should be noted that not all stockbrokers are Authorized
of The Exchange. Clerks of The Exchange and only Authorized Clerks of The
development of Africa's ______________________________________________ Exchange can deal in securi es listed on The Exchange.

financial markets. The NSE, a Please visit the NSE website - www.nse.com.ng for a list of
2. How is The Nigerian Stock Exchange Governed? Dealing Member firms.
registered company limited ______________________________________________
It is governed by the Na onal Council of The Exchange,
by guarantee, was founded in which is comprised of members of The Exchange either 6. What is an Issuing House?
appointed by the General Mee ng or by the Na onal
1960 and it is licensed under Council where there is a casual vacancy. The Council is It is a company which helps to prepare prospectuses to sell

the Investments and presided over by a President and the day-to-day new securi es offered to the public by companies and
governments. Some issuing houses have affiliated
management is vested in the Chief Execu ve Officer who is
Securi es Act (ISA) and is supported by an Execu ve Management team appointed companies that are Dealing Members of The Exchange.
by the Na onal Council. And, a number of issuing houses are also ordinary
regulated by the Securi es ______________________________________________ members of The Exchange.
______________________________________________
and Exchange Commission 3. What are the Du es of the Council?
7. What are Securi es?
(SEC) of Nigeria. The Exchange The Council's du es include but are not limited to:
offers lis ng and trading Securi es are wri en or printed financial documents
* Providing strategic direc on to The Exchange; represen ng financial value by which the claims of holders
services, licensing services, in specified property are secured. Examples of securi es
* Ensuring The Exchange cons tutes, maintains and are shares, bonds, mutual funds, and exchange traded
market data solu ons, provides a fair and efficient stock market; funds.
______________________________________________
ancillary technology services * Providing a reliable and secure facility to the public for

and more. the purchase and sale of securi es; 8. Who is a Registrar?
* Enforcing discipline among Dealing Member firms A registrar in common parlance is a keeper of official
(Stockbrokers); records in respect of securi es.
The NSE is commi ed to adop ng the highest levels of SIIA's Financial Informa on Services Division (FISD) and the ______________________________________________
interna onal standards. To support this commitment, The Intermarket Surveillance Group (ISG). The Exchange is a * Ensuring that The Exchange is operated in a manner
NSE belongs to a number of interna onal and regional founding member and execu ve commi ee member of that is beneficial to the interest of the inves ng public; 9. Who is an investor?
organiza ons that promote the development and the African Securi es Exchanges Associa on (ASEA). and
integra on of global best prac ces across its opera ons. It The NSE con nues to evolve in order to meet the needs of A person or an ins tu on that invest in securi es.
* Considering complaints about and among the
is a member of the Interna onal Organiza on of Securi es its valued customers and to achieve the highest level of ______________________________________________
Commissions (IOSCO), the World Federa on of Exchanges compe veness. It is an open, professional and vibrant members.
(WFE), Sustainable Stock Exchanges (SSE) Ini a ve, the exchange, connec ng Nigeria, Africa and the world. ______________________________________________ 10. Can an investor come to buy and sell on The Stock
Exchange?
4. Who are the principal agents of The Nigerian
Stock Exchange? Yes, but he can only do so through a Dealing Member firm
that is licensed to trade on The Exchange. It should be
The principal agent of The Exchange is the Chief Execu ve noted that not all stockbrokers are Dealing Member firms
2017/2018 NSE FACTBOOK the scope of their employment. Although Dealing Member and sell securi es on The Exchange. Under the terms of 2017/2018 NSE FACTBOOK
Officer and other agents are its employees ac ng within
of The Exchange and only Dealing Member firms can buy
firms are members of The Exchange, they are not agents or
their license from The Exchange, Dealing Members are the
principal agents of The Exchange.
only stockbrokers permi ed to print the words, “Member

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