A diversified Stocks Portfolio helps grow your wealth

Learn about equities, how you can grow your wealth and how to get started.

The term “equity” is one commonly used these days. You’ll find it in companies & startups, finance, real estate etc. But what exactly are they?

In this article, we’ll discuss;

• What equities(Stocks) are
• Benefits of purchasing them
• Tips to note before investing in them, and
• How to grow your wealth using equities

What are Equities?

Equities are buyable pieces of a company. They are also known as “stocks”, which are “shares” you buy in a company. . We’ll use them interchangeably as we proceed.

When you purchase the shares of a company, you’re buying a fractional part of that company. Anyone who buys shares in a company is referred to as a “shareholder” or “stakeholder”. These stocks are traded on the stock exchange.

When a company wants to expand their business operations, scale up or expand product offerings, they can go through offerings of stocks or shares to the public. Very recently, MTN announced a public offering of it’s shares. 575 million shares at #169.00 each.

MTN gave you and I, the opportunity to purchase shares and be recognized as stakeholders in it’s company. You can still be a part of the offerings, click here to get started on wealth.ng.

Buying stocks is not the only way to get equity. You can also get equity when you join an organization. Some companies offer their employees stock options. When you have the stocks of a company, whether by purchase or any other means, you are a partial owner of that company.

What are the advantages of buying Equities?

Why should you invest in equities or buy the stocks of any company? The answer is that it’s a means of growing your wealth.

• Capital Gain: Since the price of stocks are driven up and down by supply and demand, it means that the value of the stocks rise. When the price rises and you sell, you make more money as the price is worth more than when you bought it. Take for an example, the MTN stocks now bought at #169. If the price rises to #219 tomorrow and you sell it, you’ll be making a gain of #50.
• Income: The goal of every business is to make profit for its investors. After making profit, some companies pay it out to their shareholders in the form of Dividends or bonus. Dividends are regular payments a company makes to share profits with its stockholders.

Tips to note before investing in equities

• Buy low and sell high: As mentioned earlier, demand and supply drives the price of stocks. The trend is when stock prices are high, people buy stocks and then when the prices are falling, they tend to panic sell. However, to succeed in the market, the exact opposite is the way. When the prices are low, buy stocks then and when they are high, you can then sell.
• Research properly before buying stocks: The bitter truth is some companies won’t be successful or attain profitability. And so, you don’t want to waste your money by investing in such companies. Before researching, speak to experts and get advice. Do some due diligence and take a look at the company’s portfolio to make a guided decision.
• Diversify your portfolio: As the saying goes, do not put all your eggs in one basket. It’s not advisable to pull all your investment in one company. Anything could happen. To manage investment risks, you can invest in stocks alongside other viable access classes available on Wealth.mg.
• Buy from trusted sources: Like every other kind of trade on-line, scammers have made their way through stock trading also. You need to be careful and purchase stocks from only licensed traders. Wealth.ng is a product of WealthTech Limited (RC 1547536), an affiliate of Sankore Securities Limited. Investment management and advisory services on Wealth.ng are provided by Sankore Securities Limited, which is registered with the Nigerian Stock Exchange and regulated by the Securities and Exchange Commission, Nigeria.

How to grow your wealth with Stocks

Growing your wealth with a diversified stock portfolio is easy when you invest on Wealth.ng.

On wealth.ng, we provide stocks of the properly valued and profitable companies listed on the Nigeria Exchange(NGX). We afford you the opportunity to become a partial owner in these companies.

Here is how to get started:

1. Create your wealth.ng account: You can create an account via the website or download the app from Google Play or App Store. Follow through the easy sign up process and complete your onboarding process on your profile( BVN, Account Setup etc)
2. Search through our various stock offerings: On the marketplace page, you’ll find all available asset classes, but apply the filter to see the stocks only. You can select any stock to read more information about it before you make your choice.
3. Purchase your selected option and become a partial owner.
4. When you’ve selected the stock you want to purchase, fill in the number of units, select the “Add to Cart” button and then checkout.

What’s Left?

The only thing left is growing your wealth as the stock prices rise, your portfolio grows. You should also increase your knowledge about the equities market and how to make better investment decisions..

Did you gain something new? Why not share with friends and make a comment about it on social media. Don’t forget to tag us.

See you next time, but till then, keep buying companies! 😎

Wealth.ng… Grow Wealth with Ease!