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

Ex-Rights – Shares that are trading but which no longer Exchange traded product (ETP) – A type of security that is describe the market, and to compare the return on specific investment product (security) is usually to get your money
have rights a ached because they have either expired, deriva vely-priced and which trades intra-day on a investments. Each index has its own calcula on back, or to get more money in the form of interest, capital
been transferred to another investor, or been exercised. Ex- na onal securi es exchange. ETPs are priced, where the methodology – computed from the prices of selected apprecia on or both. The two main types of securi es are
rights shares worth less than shares which are not yet ex- value is derived from another investment instrument such stocks. As an index is a mathema cal construct, it may not equity and debt. Examples of investment products include
rights because they do not give a shareholder access to a as a commodity, currency, share price or interest rate. be invested in directly, so it may be used to construct index notes, stocks, preference stock, bonds, debentures,
rights offering. Renounceable rights may trade separately, Generally, ETPs are benchmarked to stocks, commodi es, mutual funds and ETFs whose por olios mirror the op ons, futures, swaps, rights, warrants, or virtually any
allowing a shareholder to choose sell his or her rights, indices or they can be ac vely managed funds. See components of the index. other financial asset.
rather than exercise them. See Rights. Exchange traded funds and Exchange traded notes.
Indices (or indexes) – The plural of Index. Investor – Person or en ty that purchases assets with the
Ex-Rights date – The date when a buyer of common stock is Financial adviser – See Investment adviser. objec ve of receiving a financial return. The assets an
no longer en tled to the rights that had been declared for Ins tu onal investor – A non-bank en ty with large investor may buy vary widely, but include stocks, bonds,
the security. Foreign investor – Any investor who par cipates financially amounts to invest, such as investment companies, mutual real estate, commodi es and collec bles (e. g., art). The
in a country other than the investor's own. This can happen funds, insurance companies, pension funds, investment por olio of an investor commonly includes a variety of
Exchange traded fund (ETF) – A security that tracks an on any scale, from a foreign na onal buying securi es to a banks and endowment funds. They usually trade securi es assets that balance the rewards and risks of each
index, a commodity or a basket of assets like an index fund, major corpora on buying out a company based in a foreign in large share quan es or large monetary amounts. investment. See Private investor, Ins tu onal investor,
but trades like a stock on an exchange. An ETF experiences country. Professional investor, Foreign investor.
price changes throughout the day as it is bought and sold, Investment adviser (or investment advisor or financial
just like a stock. For this reason, it does not have its net Foreign por olio investment (FPI) – Foreign por olio adviser or financial advisor) – Ins tu ons or individuals in Issuer – A legal en ty that develops, registers and sells
asset value (NAV) calculated every day like a mutual fund. investment typically involves short-term posi ons in the business of providing advice to others about securi es for the purpose of financing its opera ons.
ETFs provide the diversifica on of an index fund, as well as financial assets of interna onal markets, and is similar to investment securi es, for a fee. This service is usually a Issuers may be corpora ons, domes c or foreign
the ability to sell short, buy on margin, and purchase as inves ng in domes c securi es. FPI allows investors to take supplementary service of a stock broking or issuing house governments, or investment trusts. Issuers are legally
li le as one share. Their expense ra os are lower than part in the profitability of firms opera ng abroad without business. Investment advisers are registered by the responsible for the obliga ons of the issue, and for
those of the average mutual fund, and brokers' having to directly manage their opera ons. This type of statutory regulatory agency, the Securi es and Exchange repor ng financial condi ons, material developments and
commissions (fees) for buying and selling ETFs are similar investment is rela vely liquid, depending on the vola lity Commission (SEC) of Nigeria. any other opera onal ac vi es, as required by the
to the commissions investors pay for buying and selling of the market invested in. Foreign por olio investment regula ons. The most common types of securi es issued
stocks. differs from foreign direct investment (FDI), in which a Investment bank – An individual or ins tu on which acts are common and preference stocks, bonds, notes,
company fully controls a foreign firm. as an underwriter or agent for corpora ons and debentures, bills and deriva ves.
Exchange traded note (ETN) – A type of senior municipali es issuing securi es. Investment banks also
(unsubordinated) unsecured debt security designed to Growth stock – A stock which typically does not pay a have a large role in facilita ng mergers and acquisi ons, Issuing house – A financial ins tu on that engages in
track the total return of an underlying market index or dividend, as the company declares its choice to reinvest private equity placements, and corporate restructuring. finding capital for established companies, for private firms
other benchmark, minus investor fees. An ETN allows earnings in capital projects. In the US, for example, most Unlike tradi onal banks, investment banks do not accept wishing to convert to public companies, or for
investors to buy an obliga on, similar to a forward contract, technology companies are segmented as growth stocks. deposits from or provide loans to individuals. The two main governments, by issuing shares on their behalf. They are
which is traded on an Exchange. The purpose of ETNs is to Currently in Nigeria, a company with a 5-year average lines of business in investment banking are (1) trading responsible for packaging new issues for subscrip on and
create a type of security that combines both the aspects of dividend payout of < 30% of earnings is classified as a securi es for cash or for other securi es (i.e., facilita ng for bringing them to the market, including assembling the
bonds and ETFs. ETNs are similar to ETFs as they are listed growth stock. transac ons, market-making) or the promo on of team for a new issue, e.g., solicitors, registrars, brokers,
on an Exchange and can be bought and sold throughout the securi es (i.e., underwri ng, research, etc.), known as the etc., preparing the prospectus, and successfully working
trading day. ETNs may be linked to a wide variety of assets, Income stock – A stock that pays regular dividends, and "sell side"; and (2) dealing with pension funds, mutual with the broker to obtain approval from the exchange to list
including indices and/or single reference assets based on a offers a high yield that may generate the majority of overall funds, hedge funds and the inves ng public (i.e., the issue. An issuing house may also be a dealing member,
variety of products such as commodity futures (e.g., returns. Income stocks may require a lower level of ongoing consumers of the products and services of the sell-side), but cannot play the role of issuing house and broker for the
industrial metals, power and petroleum), foreign capital investment, thus, profits can be directed back to known as the "buy side". same issue.
currencies and equi es (grouped by such categories as investors on a regular basis. In the US, income stocks are
economic sector, strategy or geographic loca on). The most commonly companies opera ng within real estate Investment fund – Collec ve funds managed by an Lis ng – The process whereby a security is admi ed to a
issuer of an ETN is obligated to deliver the asset (e.g., real estate investment trusts—REITs), energy sectors, investment trust company (a company established with the trading in a market or on a board of a stock exchange. Upon
performance (less fees) in cash upon early repurchase or u li es, natural resources and financial ins tu ons. purpose of inves ng in other companies) or a management lis ng, the security becomes tradable. All exchanges have
maturity. Investors can also hold the debt security un l Currently in Nigeria, a company with a 5-year average team. Collec ve investments include unit trusts and closed specific requirements which issuers must sa sfy in order
maturity, at which me the issuer will give the investor a dividend payout of = 30% of earnings is classified as an end funds. See Unit trust, Closed-end fund. for their securi es to be listed and remain listed. There are
cash amount that would be equal to the principal amount income stock. different ways a security can be admi ed to trade on an
(subject to the day's index factor). The creditworthiness of Investment product (or security or investment exchange:
an ETN itself is not rated, but is based instead on the Index – A way of measuring the value of a sec on of the instrument) – An instrument (contract) that can be
creditworthiness of the issuer, making the issuer's credit stock market. An index is an imaginary por olio of assigned a value and traded. It represents ownership 1. Ini al Public Offering (IPO) – The first sale of a security
ra ng an important considera on for ETN investors. securi es represen ng a par cular market or a por on of (stocks), a debt agreement (bonds) or the rights to by a company to the public. When the securi es are
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ownership (deriva ves). The purpose of owning an
listed on a public exchange such as the NSE, the money
the market. It is used by investors and financial managers to

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