The Stock Exchange
Today Ajapa wants us to Visit A crucial part of financial literacy. We will be talking about the stock exchange.
- What is stock exchange?
- How does the Nigerian Stock exchange work?
- What are we really Exchanging?
Well, let see how well Ajapa would break down this topic.
The stock exchange is an organised and regulated financial market where securities (i.e. bonds, notes, shares) are bought and sold at prices governed by demand and supply. Primarily it’s a market where corporations, governments and other incorporated bodies can raise capital by channelling savings of the investors into productive ventures.
A typical example is About Oyinkan and Emeka. Emeka gives oyinkan some money. And she invested it in her animation business… After three years she gives Emeka back the money plus Extra, because she had made profit within the period of three years. But what if there was no profit made and the business is in great debt?
In modern exchanges, trades are conducted online or over the telephone, unlike trades in the older exchanges are conducted on the floor (called the trading floor) of the exchange itself, by shouting orders and instructions.
As wise kids you should study more on the History, Operation, Pricing, Regulation and the All-Share Index of the Nigerian stock Exchange. Send us your report @ Info@AjapaWorld.com