:: ECSL - Equity Capital Solutions Limited - Investment and Financial Management Service ::

OVERVIEW OF THE CAPITAL MARKET

THE CAPITAL MARKET

The capital market is a market for investors with surplus funds. These funds are invested in business corporations with intention of making profitable use of these funds in exchange for claims of the future earnings.

The capital market is a general term which refers to sources of long term corporate financing and it includes:

• The primary market or market for new issues (Initial Public offerings, Right Issues and Offers for subscription).

• The Secondary market is the market for shares that have already been issued through the means of primary market stated above.

On completion of the primary market activities, the shares are listed on the official list of a stock exchange. This is known as quotation. A stock exchange is an arrangement whereby large and small investors alike buy and sell through stockbrokers, securities (shares and bonds) of companies and government agencies.

BENEFITS OF BUYING SHARES
Individuals or institutional investors who buy ordinary shares are entitled to the under listed benefits:

• Dividend which is part of company’s profit.
• Bonus shares (i.e. extra shares fully paid our of reserve which are distributed to existing shareholding in proportion to their existing holdings.
• Capital appreciation as market prices of shares increase.
• Right to attend meeting of shareholders and participate in its deliberations as voting member.
• Use of shares as collateral for loan.

REGULATORY AUTHORITIES/MAJOR INSTITUTIONAL PLAYERS IN THE NIGERIAN CAPITAL MARKET

These include:
1. Securities and Exchange Commission
2. Nigerian Stock Exchange
3. The Central Securities Clearing System
4. Investment and Securities tribunal
5. Various Shareholders Association
6. Association of Capital Market Registrars

OUR INVESTMENT APPROACH

Our process is structured to assist our clients realize the following:
• To achieve desired rate of return and level of diversification.
• Identifying the likely shares that will pay good dividend and bonus as well as desired level of capital appreciation.
• Initial structuring of your investment portfolio. We will select investments bearing in mind objectives of the portfolio.
• Regular monitoring of happenings in the money and capital markets to grab new investment opportunities.
• Rendering adequate report on performance of your portfolio and provision of research reports on economic and market condition.
• Constant review of your portfolio as to identify securities to buy or sell.
• Acting as liaison between your company and the registrars (whenever we are mandated to do so).

In a nutshell, our services are particularly structured to meet your requirements and risk tolerance level, and we select appropriate blue chip stocks for your portfolio in order to achieve optimal returns.

OUR MARKET PARTICIPATION REPORT

We had performed as stockbrokers to Dangote Flour Plc, Afribank, Skye Bank, DAAR Communications, Standard Alliance Insurance public offering. We have been actively involved in the private placement of top notch companies such as Energy Company Nigeria Limited (ENCON), Multi-Trex Investments Limited, Courteville Investment Plc, Afromedia Nig. Plc, Three Point Industries etc.

We also manage the following companies’ portfolio amongst others: Prudential Investment Limited, DANSA Oil and Gas Ltd, DANSA Agro Allied Limited, Divine Plus Hotels, Gramet Nigeria Limited, etc. In addition, we have successfully marketed and made returns in respect of the following concluded public offerings:

FBN PLC N 6.3billion
DANGOTE SUGAR N1.5billion
ACCESS BANK N1.5billion
FIDELITY BANK N1.6billion
DANGOTE FLOUR N5.1billion
BANK PHB N6.4billion
AIICO N660million
ZENITH BANK N728.9million
NAHCO N1.9billion
BAGCO N3.9billion

We hope to further consolidate our success story by ensuring we rank among the top 10 stockbroking firm in Nigeria.


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