Investing glossary
Plain-English answers to common questions about Nigerian shares, stockbrokers, dividends, CSCS accounts, and more.
A dividend is a portion of a company's profits paid out to registered shareholders, usually on a per-share basis, declared at the discretion of the company's board.
A CSCS (Central Securities Clearing System) account is an electronic account that holds your Nigerian shares as a dematerialised record, assigned to you under your CHN number.
A CHN (Central Holder Number) is a unique identification number assigned to every registered investor in the Nigerian capital market, linking them to their CSCS account and share records.
T+2 settlement means that a share transaction on the Nigerian Exchange is finalised two business days after the trade date. "T" is the trade date and "+2" means two additional business days.
A stockbroker is a licensed professional or firm authorised by the Securities and Exchange Commission (SEC) to buy and sell securities on behalf of investors on a recognised stock exchange.
Online share buying in Nigeria refers to purchasing NGX-listed shares through a regulated investment platform or stockbroker's digital channel, without visiting a broker's office in person.
The process that occurs after a share purchase on the NGX, including T+2 settlement, CSCS registration, and shareholder record updates.
Share registration in Nigeria is the process by which purchased shares are recorded in an investor's legal name in both the CSCS depository and the company's shareholder register, maintained by a registered company registrar.
An employee share scheme is a formal arrangement by which a company allocates shares — or rights to acquire shares — to some or all of its employees, typically as a form of compensation, long-term incentive, or ownership benefit.
The main types of employee share plans used by listed Nigerian companies are: Share Allotment Schemes (outright grants), Employee Stock Option Plans (ESOPs), and Share Incentive Plans (SIPs) — each with different mechanisms, vesting structures, and regulatory considerations.
An Employee Stock Purchase Plan (ESPP) is a scheme under which employees make regular payroll deductions that are pooled and used to purchase company shares on the stock exchange on their behalf.
Vesting is the process by which an employee's right to allotted shares becomes unconditional over time. Until shares vest, the employee cannot sell them and may forfeit them if they leave the company.
Equity compensation is a form of non-cash employee remuneration in which the employee receives shares (or rights over shares) in the company as part of their total reward package.
Payroll deduction investing is a method of automatically saving and investing money by having a fixed amount deducted from an employee's salary each pay period and used to purchase assets — typically company shares.
Dividend reinvestment is the process of automatically using dividend payments to purchase additional shares rather than receiving them as cash, compounding the total number of shares held over time.
Share allocation (or share allotment) is the formal act of issuing shares to a named recipient. In the context of employee share plans, it is the process by which a company issues shares to employees as part of an ESIS.
Employee ownership is any arrangement through which employees hold a financial stake in the company they work for — through shares, options, profit-sharing schemes, or co-operatives.
Shares Saver lets you buy and own NGX-listed shares directly in your name through regulated broker execution.