Frequently Asked Questions

What is a Stock Exchange? ?

A Stock Exchange provides a market which facilitates the buying and selling of shares of quoted companies.

What is Securities and Exchange Commission (SEC)?

Is the apex regulatory institution of the Nigerian Capital Market with the basic objectives of investor protection and Capital Market development towards enhancing socio-economic growth and development

What is the primary market?

The primary market is the market for new or fresh issue of shares to the investing public.

What is the Secondary Market?

The secondary market is the market for shares that are already listed on the exchange and are held by shareholders.

Shares, Stock

Shares or Stocks are synonymous. A share is a unit of ownership or equity, in a company or corporation.


A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits

Bonus Shares

Bonuses are additional shares declared by a company to its shareholders and is paid out of a company’s reserves/profits.


Central Securities Clearing System Plc is the Clearing and Settlement House of the Nigerian Capital Market and the Nigerian Stock Exchange (NSE).

T + 3

Settlement cycle for transactions with regards to buy/sale, i.e., Trade date plus three working days.

What is dematerialization?

Dematerialization refers to the process of converting the physical share certificate (after it’s verification by the listed company’s Registrars) into an electronic record kept by the CSCS.

How long does Dematerialization take?

Dematerialization can take anything from 1 week to a month depending on the Registrar or issues that may arise from the dematerialization process.

What issues can delay dematerialization?

Irregular signature, different signature(s), failure to provide banker’s confirmation, incorrect details on certificate or covering documents.

What Are The Necessary Documents Needed To Open An Individual Stock Broking Account?

a. Fill our account opening form (the form can be downloaded from our web site (http://www.rostrumsec.com.ng)
b. Attach a copy of your International Passport / National Identity Card / Driver’s license, recent utility bill, and 2 passport photographs to your account opening form;
c. Forward the account opening form to our office at 257 Herbert Macaulay Way, Alagomeji Yaba, Lagos.

What Are The Necessary Documents Needed To Open A Corporate Stock Broking Account?

In addition to the above documents required for the opening of an individual account, the following are needed for a corporate account:
a. Certificate of Incorporation
b. Memorandum and Articles of Association(MEMART)
c. CAC Form 2
d. CAC Form 7
e. Sealed Board Resolution authorizing Rostrum Investments & Securities Limited to open an account
f. Sealed Board Resolution stating signatory’s names and specimen signature to account

What are the Procedures for Investing in Shares?

Click on "Open An Account" here or on bottom menu on our web site. Fill and complete the online form. A sales representative will contact you by phone and email.

What benefits do I get as a shareholder?

• The right to attend Annual General Meetings
• Dividends
• Bonuses
• Rights Offer to acquire more shares
• Capital Appreciation

How long does it take for my certificates to get verified?

Once all documents required for verification are provided, your certificates could be verified within two weeks of submission with your stock broker. Certificates may sometimes take longer to verify. Please ask your stock broker for requirements for certificate verification.