Call us: 01 4622 782, +234 81882939935 +234 817 0386 722 | E-mail: info@qualinvestcapital.com

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Frequently Asked Questions

 

Who is Qualinvest Capital Limited?

Qualinvest Capital Limited (“QCAP”) was incorporated in November, 1992 as an investment management company focused on promoting investments in the Nigerian Capital Market. The Company obtained a Broker/Dealer license from the Securities and Exchange Commission (“SEC”) in 1992 and subsequently became an Authorized Dealer of the Nigeria Stock Exchange (“NSE”). In 2004, QCAP was licensed as an Issuing House by the SEC. QCAP is also authorized by the Central Bank of Nigeria (CBN) to deal in the Nigerian Treasury Bills.

 

Where are we situated?

Our head office is located at 1st Floor, Foresight House, 163/165, Broad Street, Lagos, Nigeria. You can also contact our team of experts through : Info@qualinvestcapital.com or on telephone numbers +01 4622 782, +234 803 3578 335 +234 817 0386 772

 

How do I open a stockbroking account?

You can walk into our office and request to open a stockbroking account. Our account opening forms can also be downloaded via our web portal (www.qualinvestcapital.com/client/download) to be completed and submitted to offices

 

The minimum account opening documentation required for individual accounts are: one passport photograph, valid utility bill and a valid means of identification (international passport, driver’s license or national ID card).

 

The minimum account opening documentation required for corporate accounts are: certificate of incorporation, forms CO2 and CO7, Memart, passport photograph of the directors, utility bill, board resolution to open account and names of nominated signatories to the account, and duly executed signature mandate by the appointed signatories.

 

 

Can I transfer my account from my present Stock broker to QCAP?

Yes you can transfer your account from one stock broking house to another. This has been made very easy by the CSCS, and this happens at no cost. All you have to do is contact Info@qualinvestcapital.com and the stock transfer requirements/forms will be sent to you to adopt. Once we receive the instruction from you, we will initiate the transfer through the CSCS, again this is at no cost whatsoever.

 

Can I transfer my account from a dead/in-active stockbroking firm to QCAP

Yes you can transfer your account from a dead/in-active stockbroking firm to QCAP.

 

The minimum inter-member transfer request documentation required are: Duly executed inter-member transfer form, Letters addressed to CSCS and resident stockbroking firm on the transfer request, Banker’s confirmation, a passport photograph of the shareholder, current utility bill of the shareholder, dividend warrant stubs, contract note/statement of account from the resident house. For more enquiries: contact Info@qualinvestcapital.com.

 

 

What if I want to open an account with QCAP and still maintain my current stockbroker?

You may maintain your existing stockbroking a/c while we open a new one for you, using the same CHN (Clearing House Number), but different a/c number with the CSCS. Both the CHN (Clearing House Number) and your address with the existing stockbroking firm will be maintained.

 

 

How do I place buy or sell orders?

Sale or Purchase orders can be placed on-line via our web portal. Orders can also be placed by walking into our office and filling out a sales or purchase mandate form.

 

For all purchase orders, clients account must be prefunded.

 

Who will manage my account?

This can be operated in two forms, you can either send your instruction to us to execute on your behalf (these are for extremely busy clients) or you trade on your own. With the web access you get as a client, an online access account will be created for you upon subscription, that is, YOU are absolutely in charge of managing your account, you can manage the activity in you stock account from anywhere in the world at any time of the day once you have access to the internet.

 

How do I monitor the stock market and know the gainers and losers?

A Daily Stock Price List is sent to all clients, and also uploaded to our website daily.

 

I am new in the Capital Market and don't know how to go about stock selection?

Our research team gives free subscription to our Weekly Top Stock Picks which presents investors, with insights on the Nigerian Stock market and a chance to position themselves in companies that are most likely to return good value on their investments. Investors are also exposed to stock market reports each week where our analysts dig deep into any of the companies on our coverage.

 

Can I transfer my account from my present Stock broker to QCAP?

Yes you can transfer your account from one stock broking house to another. This has been made very easy by the CSCS, and this happens at no cost. All you have to do is contact info@qualinvestcapital.com and the stock transfer requirements/letters will be sent to you to adopt. Once we receive the instruction from you, we will initiate the transfer through the CSCS, again this is at no cost whatsoever.

 

What if I want to open an account with QCAP and still maintain my current stockbroker?

You may maintain your existing stockbroking a/c while we open a new one for you, using the same CHN (Clearing House Number), but different a/c number with the CSCS.

 

Who will manage my account?

This can be operated in two forms, you can either send your instruction to us to execute on your behalf (these are for extremely busy clients) or you trade on your own. With the web access you get as a client, an online access account will be created for you upon subscription, that is, YOU are absolutely in charge of managing your account, you can manage the activity in you stock account from anywhere in the world at any time of the day once you have access to the internet.

 

 

How do I monitor the stock market and know the gainers and losers?

A Daily Stock Price List is sent to all clients, and also uploaded to our website daily.

 

I am new in the Capital Market and don't know how to go about stock selection?

Our research team gives free subscription to our Weekly Top Stock Picks which presents investors, with insights on the Nigerian Stock market and a chance to position themselves in companies that are most likely to return good value on their investments. Investors are also exposed to stock market reports each week where our analysts dig deep into any of the companies on our coverage.

 

How do I place a buy and sale order?

You can place your buy or sale order online, through your online account access and you can also make orders through email.

 

I am not in Nigeria; can I open an account with QCAP?

Yes, you can have an account with QCAP and be very active from any part of the world. QCAP is already servicing some clients abroad who do not even have time to monitor their investments or have minimal or no access to the internet e.g oil and gas offshore workers. These set of clients usually subscribe to our Portfolio management service i.e discretionary portfolio management.

 

How do I know that my order has been executed?

You will receive an automated, system generated and system-sent email of your contract notes at close of business a trade is executed on your behalf. CSCS also sends transaction alerts to you at close of business.

 

Can I access your research reports?

Yes you can have access to our research reports provided you subscribe to it on our website.

 

When do I get value for the shares sold?

Executed trades settle in clients account on the 4th day (Transaction day+3 days).

 

You will get value for the shares sold on the 4th day. A cheque is issued for the sales proceeds. Clients can either pick up their cheques at our office or subscribe to the Direct cash settlement system from CSCS.The direct cash settlement system is the process where proceeds from trades executed by your stockbroker on the Exchange settles directly into your Bank account. The form is available at our office on request or via our web portal and email: info@qualinvestcapital.com.

 

Can I access your research reports?

Yes you can have access to our research reports provided you subscribe to it on our website.

 

Note: If you did not find what you were looking for: please click here to send us an email.

 

 

What other transactions can I do with QCAP?

Apart from purchase and sale of stocks, QCAP renders other services such as  dematerialization of share certificates, e-bonus, processing of  indemnity, purchase of  bonds, tracking of certificates, dividends etc.

 

How do I get market information?

Our Research team publishes routine reports which can be accessed via our website. Also available on the website are the daily pricelist and other valuable stock market information to enable client make informed investment decisions. You can also contact our team of experts to provide professional investment advice to you.

 

What is a Stock Exchange?

A Stock Exchange is an organized market for trading of securities, i.e. shares (or equities), government and corporate bonds, and their derivatives. The Nigerian Stock Exchange has eight branches situated in Lagos Head Office, Abuja, Ibadan, Onitsha, Port Harcourt, Kaduna, Kano, Benin and Yola.

 

What are shares, stocks and bonds?

Shares or stocks represent ownership rights in companies. In other words, those who own the shares of a company own the company. Depending on the nature of the company, the shareholders accept limited or unlimited liability for losses borne by a company. In the case of a limited liability company, the liability of shareholders is limited to the contribution made when purchasing the shares. On the other hand, in the case of an unlimited liability company, the liability of shareholders to cover the losses of a company is not limited to the contribution made by shareholders via the purchase of the shares held.

In this case, liability extends to the personal property of shareholders. Likewise, shareholders own all excess profits made by a company after obligations such as corporate tax and loan obligations have been serviced. It is important to note that all companies listed on the stock exchange are limited liability companies.

 

 

How do I invest in the Nigerian Stock Market?

Opportunities to buy shares exist via two channels, i.e., by:

  • Investing through public or private offers of new or existing shares - Several quoted and unquoted companies as well as the different tiers of government offer shares or stocks to the public to fund development and other projects. In the case of public offers, the securities are advertised in the print and/or electronic media and application forms are made available through stockbrokers, such as QCAP. In the case of private offers, the shares are not advertised to the general public but are offered to a selected number of prospective investors.

Investors subscribe to these offers by filling out an application form and attaching payment for the securities they wish to purchase. Subsequently, the issuing house to the public or private issue of the security processes all applications and allots shares to subscribers in accordance with agreed criteria. Certificates are then sent to successful subscribers and serve as evidence of ownership. Shareholders may trade these certificates in the future. Meanwhile, cheques for the amount paid for subscriptions are mailed to unsuccessful subscribers.

 

  • Buying securities on the Stock Exchange - Investors may purchase shares on quoted securities in The Nigerian Stock Exchange. Investors can only buy shares through agents called stockbrokers, such as QCAP. Investors are advised to contact stockbrokers who would provide the necessary documentation to open an account with the Central Depository. Subsequently, investors should discuss their orders with the stockbroker who would then purchase the shares.

 

 

What is the minimum amount I can invest in purchase of shares?

For individuals: N25,000 and above

Corporate: 250,000 and above

 

 

What are the charges for buying and selling shares in the Nigerian Stock Market?

The following are the statutory charges for the purchase and sale of shares on The Nigerian Stock Exchange:

Sale

 

 

 

 

RATES

VAT

TOTAL

Brokers Commission

1.35% of Consideration

5% of Brokers Commission (or 0.0675% of Consideration) NIL

1.3500 % of Consideration

NSE Fees

0.5% of Consideration

5% of NSE fee (or 0.015% of Consideration)

0.315% of Consideration

CSCS Fees

0.36% of Consideration

5% of CSCS fee (or 0.018% of Consideration)

0.378% of Consideration

Stamp Duties

0.075% of Consideration

Nil

0.075% of Consideration

TOTAL

 

 

2.118%

 

Purchases

 

 

 

 

RATES

VAT

TOTAL

Brokers Commission

1.35% of Consideration

5% of Brokers Commission (or 0.0675% of Consideration) NIL

1.3500% of Consideration

SEC Fees

0.3% of Consideration

Nil

0.3% of Consideration

CSCS Fees

0.06% of Consideration

5% of CSCS fee (or 0.003% of Consideration)

0.063% of Consideration

Stamp Duties

0.075% of Consideration

Nil

0.075% of Consideration

TOTAL

 

 

1.7880%

 

Consideration refers to the value of the shares purchased

 

 

What are the returns from investing in shares?

 

Returns from investing in shares are:

•          Cash Dividends - This refers to periodic payments made by the companies to their shareholders, usually at the end of the companies' financial year. Some companieas also pay interim dividends before their formal year end. The payments are made to all shareholders listed in the companies' register of members as at a particular date called the company's closure date. However, it is important to note that the stock exchange adjusts the share price of the company for this payment. For instance, if a company declares a dividend of N0.50 per share, the company's share price would be adjusted downwards by N0.50 on the company's closure date.

          Bonus/Scrip Shares - This refers to the issue of new shares by companies through the conversion of a portion of their capital and/or revenue reserves to shares. The new shares are then distributed amongst shareholders who are listed in the company's register of shareholders as at a particular date known as the company's closure date.

•          Capital Gains - This refers to the appreciation in a company's share price on the stock exchange.How do I know when dividend is pain?

The news of payment of dividend is usually public information. Such dividend announcements are also published on our website but the safest way is to process you e-dividend.

 

How do I monitor activities on my account?

You can subscribe to trade alert that instantly tells you of any transaction on your account. You can also request for your stock position from QCAP or from CSCS on regular basis.

 

What is CSCS?

CSCS is Central Securities Clearing System. It is the clearing house for all securities transaction in Nigeria and the keep records of securities transactions on The Nigerian Stock Exchange. CSCS is actually the custodian of your investments so that you do not run any risk investing through any stockbroking firm.

 

How do I buy shares from the Stock Exchange?

You can buy shares through a licenced stockbroking firm who are brokers/dealers on the floor of The Nigerian Stock Exchange.

 

What other services does QCAP offer?

QCAP offers full bouquet of investment banking services. This includes Asset management, corporate finance and advisory, project finance, and securities dealing.

 

How do I deposit my certificates and what happens after?

Approach your Stockbroker with the certificates, sign the stock transfer form and collect a script receipt as evidence of deposit. The Broker processes it by sending to the relevant Registrar for verification and dematerialization.

 

How long does it take to verify a certificate?

Not specific. It depends on the registrar.

 

Do I need a bank account before I can buy or sell shares?

Yes, because you can do a transfer from your bank account for purchase order and also either request for funds transfer or cheque lodgment for sales transactions.

 

  • WHAT IS THE CAPITAL MARKET (STOCK MARKET)
    • A specialised market where shares are bought and sold
    • A market where long terms funds are sourced through Equities and Debt Instruments.
      These instruments are subsequently traded openly in a Stock Exchange.

 

  • Why Need a Stock Exchange?

A stock exchange is the place where companies can raise money to make their businesses bigger and better. Companies raise this money by selling shares or stocks to investors. At the same time, the stock exchange gives investors an opportunity to invest in these companies and benefit from any profits they may make. Government can also raise money from stock exchange especially through sale of development stocks, bonds etc

 

  • WHAT IS A SHARE OR A STOCK?

The words shares or stocks are often used interchangeably.
share is what one has to own to become a member of a company. When you buy a share in a company you become a member of the company. Being a member or shareholder means that you share in the profit or loss of the company.

Companies issue shares. These shares stand for the money which shareholders (who are the members of the company) put down when they first invested in the company.

Owners of shares (shareholders) are presumed to own the company. If the company makes a profit, the shareholders have the right to a share of the profit, which is declared for distribution. We call such a slice of the profit a dividend. Shares in listed companies are traded on The NSE on every working day of year.

 

  • WHO ARE THOSE INVOLVED WITH THE CAPITAL MARKET
      • Regulators i.e. Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE).
      • Investors i.e. individuals, organisations, women, etc.
      • Stockbrokers
      • Registrars
      • Spectators (e.g. some of you)
      • Issuing Houses
      • Banks and other Fund Surplus UNits e.g. Pension Funds, Insurance Companies, etc.
      • The stockbroker remains the most useful market operator to the Investors, as it is only through him/her that the investors can buy and sell shares on the stock exchange.

 

  • HOW DO I PARTICIPATE?
    You can participate by buying shares through:
      • Primary Issue:- It is often advertised in the news media and with posters in banking halls and stockbroking offices. This is not a regular event.
      • Secondary Market:- This market occurs every working day, and all you need is give purchase orders to your stockbroker like FSL.
      • Some Commitment (Money & Time):- Like all things worth doing, you need a quantity of this.

 

Why Invest In The Capital Market?

Investing in the Capital market is important for people who wish to build a healthy financial future.

 

What Instruments are traded in the Capital Market?

There are diverse instruments traded in the Capital Market.  They include Shares, Mutual funds, Bonds, ETFs, Derivatives , Fixed Income etc.

 

How long does it take to sell my shares and get value? 
Orders are executed immediately they are received. Payment is on the third day after execution, that is T+3

 

 What is T+3? 
Transaction day plus 3 days.  It is the time- lag from the date of sale to collection of cash.