For eight weeks running, we have been discussing principles of profitable investment in shares. In the first edition published on Tuesday March 5th, 2013, we stated that notwithstanding the crash of the stock market between 2008 and 2009 and the colossal losses suffered by some investors, investment in shares is still profitable.

David Oso: Some of the brokers are very fraudulent in their operations and dealings. For instance, few years back when I planned to buy shares for my granddaughter, I gave money to my broker but for several months, he failed to issue me a receipt for the shares. In fact I pressurized him for countless numbers of times, and even at a point threatened him before I was given receipt for the shares of my granddaughter shares.

On the list of the top ten performing stocks last week are building materials giant – Dangote Cement, Unilever Nigeria Plc, Chemical and Allied Products, CAP, Guaranty Trust Bank, Stanbic IBTC Holdings Plc, and Presco Plc.

The Securities & Exchange Commission has suspended Aims Asset Management Ltd for non-refund of the sum of N300, 000.00 deposited by an investor under a Portfolio Investment Agreement.

Another organisation you need to know for profitable investment in shares is Central Securities Clearing System (CSCS). Just as you cannot do without the services of a stockbroker and a registrar, you cannot do without the services of CSCS, except you do not want to sell your shares, or buy from existing shareholders.

Profitable investment in shares also requires knowledge of the organisations that regulate investment in shares. These organisations set the rules that must be followed by investors and operators, and also ensure that the rules are observed through monitoring and enforcement. They also punish anybody found to have disobeyed any of these rules.

A lot of people do business, but they don’t have a company. They are two different things. A company is an organisation legally registered, according to the laws, with the government to do specific types of business activity. Hence, before the law and the authorities of the land, a company exists like a person. It can be sued and it can sue. It can also access benefits or services of other organisations like banks and supply companies.

The shares of the following ten companies recorded the highest gains last week. These are PZ Cusson Nigeria Plc, UACN Plc, Forte Oil Plc, Cement Company of Northern Nigeria Plc (CCNN), BOC Gas Plc, A.G Leventis Plc, UBA Plc, Neimeth International Pharmaceuticals Plc and Glaxosmithkline Nigeria Plc.

Investing in shares to me is not something many students can afford, most especially while you are still in school and you do not have a lot of financial backing from home to actually carry out such investment.

As you cannot do without a stock broker, you cannot do without registrars once you buy the shares of a company.

Some of the inquiries from our readers indicate that a lot of people that bought shares do not know about the existence of registrars or their importance to the profitability of their investment in shares.

Over the past few years, Union Homes Savings and Loans has been experiencing downward fortune apparently due to low patronage of mortgage products by the Nigerian public. The company’s audited 2011 financial statement released to the investing public last week showed that Union Homes recorded significant losses in all measurement parameter except for share of profit accruing to the company from associated entities as well as income from investment. Stockbrokers said that the result may be a pointer that the company is grappling with managerial crisis.

I wish to know the status of Afribank Plc now Mainstreet Bank Plc and BAGCO PLC, in the Nigeria Stock Market, because I discovered that I can’t locate their names in the Daily Transactions in the Nigerial Stock market (Matthew Ogundele)

I bought I0,000 units of former Oceanic Bank Plc and 5000 of Intercontinental Bank Plc, through Professional Stockbrokers Ltd. These stocks were supposed to be transferred to Ecobank and Access Bank respectively. In my CSCS account, there is nothing.

In the first part of this article,we established that conflict is part of human life, and it occurs in every human activity. The most important thing is that there are laid down rules or procedures to ensure that whenever they occur, conflicts are quickly resolved. In the capital market, conflicts also occur, between operators and investors, and amongst operators. However, to sustain and enhance investors’ confidence, such conflict must be resolve promptly.

Stockbrokers and Registrars are very critical to profitable investment in shares. To invest in shares and not to know about them, or be familiar with them, is very risky. Unfortunately, this is a risk a lot of people that bought shares have been taking.