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The Performance Documentary of Listed Nigerian Companies The Performance Documentary of Listed Nigerian Companies

Coupon – The interest rate stated on a bond when it's Companies and Allied Ma ers Act, and must meet specific done electronically, without relying on the tradi onal route earnings (income or turnover) by the number of
issued. The coupon is typically paid semi-annually. This is requirements set by the NSE to receive a dealing member of share cer ficates and transfer deeds. Electronic share outstanding shares. EPS = Net Earnings / Outstanding
also referred to as the "coupon rate" or "coupon percent license. As foreign investors are legally qualified to cer ficates offer poten al investors a way to get around Shares.
rate". par cipate in the ownership of Nigerian stock broking the me-consuming task of transferring shares in their
firms, dealing members can also enter into any form of names; it also bypasses problems like delays in processing, End-to-End (or E2E or E-to-E) – A business term used to
Central Securi es Clearing System Plc (CSCS) – CSCS is partnership with foreign stock broking firms. bad deliveries via post or other conven onal sources. refer to an en re process, specifically the beginning and
licensed by the SEC as a Central Securi es Depository end points of a method or service. The theory embraces
(CSD). A CSD facilitates the delivery (transfer from seller to Debenture – A medium- to long-term debt instrument Demutualiza on – The process by which a member-owned the concept of elimina ng as many middle steps as
buyer) and se lement (payment) of traded securi es. The used by large companies to borrow money. The term may organiza on (a mutual) changes its legal structure to a possible to op mize performance and efficiency in any
CSCS enables securi es transac ons to be processed be used interchangeably with bond, loan or note. A stock company. A mutual is a company created to provide a process. E2E trading automa on takes the en re trade life
electronically. The company's primary func ons include: debenture is generally freely transferable by the holder specific service at a low cost to benefit its members. cycle into considera on. The concept refers to a fully
who has no rights to vote in the company's general Tradi onally, a mutual raises capital from its members in automated (technology-driven) trade life cycle to increase
* Central depository for electronic share cer ficates of mee ngs of shareholders, but who may have separate order to provide them services, while a stock company speed, reduce costs and improve efficiency.
companies listed on the Exchange mee ngs; or votes, for example, on changes to the rights raises capital from shareholders and other financial
* Sub-registry for all listed securi es (in conjunc on with a ached to the debentures. The interest paid to holders is a sources in order to provide services to its customers. Equity – The meaning is dependent on the context in which
registrars of listed companies) charge against profit in the company's financial Depending on the organiza on's profit structure, a mutual the term is used:
* Issuer of central securi es iden fica on numbers to statements. A debenture may be conver ble into equity may redistribute some profits to its members, whereas a
shareholders shares of the issuing company a er a predetermined stock company distributes profits to equity or debt 1. A stock (share) or any other security represen ng an
* Custodianship (in conjunc on with custodians of local period of me; it may also be non-conver ble, and would investors. In a mutual, the legal roles of customer and ownership interest. See Stock
and foreign instruments) usually carry a higher interest rate than a conver ble owner are joined (members), and in a stock company the
debenture. roles are dis nc vely divided. In demutualiza on, 2. On a company's balance sheet, the amount of funds
CSCS offers investors online account access to view their ownership of the company is separated from the exclusive contributed by the owners (the stockholders) plus the
securi es por olios. Investors must first select a broker Debt security – A debt instrument that can be bought or right to use the services provided by the company. retained earnings (or losses). See Shareholders equity
before an account can be opened with the CSCS. sold between two par es and has basic terms defined, such
as amount borrowed (nominal or no onal amount), Deriva ves – A security whose price is dependent upon or 3. In the context of margin trading, the value of securi es
Custodian – Agent, such as a bank, a trust company or interest rate, and maturity/renewal date. Debt securi es derived from one or more underlying assets. The deriva ve in a margin account minus what has been borrowed
other organiza on, which holds and safeguards an include government bonds, corporate bonds, cer ficates itself is merely a contract between two or more par es, and from the brokering firm
individual's, a mutual fund's, or an investment company's of deposit (CD), state and local bonds, collateralized its value is determined by fluctua ons in the underlying
assets for them. They have the legal responsibility for their securi es (such as CDOs, CMOs, GNMAs) and zero-coupon asset. The most common underlying assets include stocks, 4. In the context of real estate, the difference between the
customers' securi es, which implies management and securi es. Most debt securi es are traded over-the- bonds, commodi es, currencies, interest rates and market current market value of the property and the amount
safekeeping. Custodians usually charge a fee for the counter. Debt securi es get their measure of safety by indices. Most deriva ves are characterized by high the owner s ll owes on the mortgage, if applicable. It is
services they provide. having a principal amount that is returned to the lender leverage. Futures contracts, forward contracts, op ons and the amount that the owner would receive a er selling a
(investor) at the maturity date or upon the sale of the swaps are the most common types of deriva ves. property and paying off a mortgage
Data vendor – Firms that provide data to financial market security. They are typically classified and grouped by their
operators and investors. Distributed data is collected from level of default risk, the type of issuer and their income Dividend – A distribu on of a por on of a company's 5. In terms of investment strategies, equity (stocks) is one
an exchange's live feeds, broker and dealer desks, and payment cycles. earnings, decided by the board of directors, to a class of its of the principal asset classes; the other two are fixed-
regulatory bodies. The types of data offered varies by shareholders. The dividend is most o en quoted in terms income (bonds) and cash/cash-equivalents. These are
vendor and most typically, covers informa on about Delis ng – The removal of a listed security from the of the naira amount each share receives (dividends per used in asset alloca on planning to structure a desired
en es (companies) and instruments (shares, bonds, etc.) Exchange on which it trades. Stock may be removed from share). It can also be quoted in terms of a percent of the risk and return profile for an investor's por olio
which companies might issue. an Exchange because the company for which the stock is current market price, referred to as dividend yield.
issued may (1) voluntarily or involuntarily not be in Ex-Dividend – A classifica on of trading shares when a
Dealer – An individual or firm that buys and sells securi es compliance with the lis ng requirements of the Exchange; Dividend per share (DPS) – The sum of declared dividends declared dividend belongs to the seller rather than the
or "takes posi ons" for itself, or for its own account. (2) choose, with the approval of its shareholders, to for every ordinary share issued. Dividend per share (DPS) is buyer. A stock will be given ex-dividend status if a person
Securi es bought for the firm's own account may be sold to voluntarily delist; or (3) be acquired by another company. the total dividends paid out over an en re year (including has been confirmed by the company to receive the
clients or other firms, or become a part of the firm's Delis ng of a debt product such as a bond occurs on the interim dividends but not including special dividends) dividend payment. The person who owns the security on
holdings. maturity date (day of repayment) of the principal (loan divided by the number of outstanding ordinary shares the ex-dividend date is awarded the payment, regardless of
amount) to investors. issued. who currently holds the stock. See Dividend.
Dealing member – Ins tu on (stock broking firm) that is
licensed by The Nigerian Stock Exchange and charges a fee Dematerializa on – Indicates the conversion of Earnings per share (EPS) – The por on of a company's Ex-Dividend date – The day on and a er which the right to
or commission to buy or sell securi es listed on the NSE's shares/securi es from a physical cer ficate to an profit allocated to each outstanding share of common receive a current dividend is not transferred from seller to
pla orm (The Exchange) on behalf of investors. The electronic form. This allows for paperless trading via state- stock. Earnings per share serves as an indicator of a buyer. A er the ex-date is declared, the stock will usually
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company's profitability. It is calculated by dividing the net
of-the-art technology, and these transac ons of shares are
ins tu on must be incorporated and registered under the
drop in price by the amount of the expected dividend.

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