Frequently Asked Questions - Stock Market

The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. The primary markets are where investors can get new securities issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the businesses by the Company.

The secondary market is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold. Example in Nigeria is the Nigerian Stock Exchange. This is the market for trading (buying/selling) of securities already listed on an Exchange.

Opening an account with CPIL comes with lots of benefits. You will have the privilege of having your account managed by the professionals in the Industry; you will enjoy the premium and excellent services we are known for; you will enjoy quality research information regularly; the benefits are endless actually!

This is a process in which physical share certificates obtained through public offers are converted after verification by the listed companies Registrar’s into an electronic record kept by the CSCS. Without dematerialization, such shares cannot be sold on the Nigerian Stock Exchange.

You can only get your share certificates verified through a Stockbroking firm. You have to take your certificates to a Stockbroking firm where you will fill in/sign forms including the Transfer Form. The Stockbroking firm will take the certificate(s) 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.

Once all documents required for verification are provided, your certificates could be verified within two weeks of submission with your Stockbroker. Certificates may sometimes take longer to verify in case of any irregularity in signature, this could further extend the duration of the verification process as the shareholders’ attention may be required or be asked to produce bankers’ confirmation of signature.

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. In essence, it is a way of protecting your investment.

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

A Registrar keeps records like names, addresses, signatures and total holdings of shareholders of a particular company.

Depending on the liquidity of the stocks, you should get your cheque on the third day (T+3) after sales of such shares have been confirmed.
Client must have a current account in which proceeds of their shares would be deposited.