Where are your Stocks?

So you’ve finally bought that stock and own a piece of your favorite company, Great Job! Although everything points to a successful transaction — you were debited, you got the bank alerts — the stock is yet to reflect on your portfolio. Relax, it’s just making the rounds and will show up soon.

How the Stock Market Works

Before we get knee-deep into the workings of the stock market, there are a few things you must know about how it works:

1. The Stock Market opens for trading by 10:30 AM and closes by 2:30 PM (WAT)
2. Trading on the Stock Market only occurs between Monday and Friday
3. If a Buy request is made outside of trading hours, cash equivalent is debited from your account and kept in a pending state till market opens.
4. Sell order is kept in a pending state before the execution of the order and then on completion, your wallet is credited and the units sold deducted from your portfolio.
5. Stock trading takes place on the Nigerian Stock Exchange (NSE) and it is regulated by the Securities and Exchange Commission (SEC)
6. The NSE and SEC have granted third-party licensing to companies like Wealth.ng through Sankore Securities to trade directly on the floor of the exchange.

Now that you are familiar with these variables, these are the things that happen when you make an effort to buy a Stock.

• Place order at specific price
• Cash equivalent of shares bought leaves your account

Note: A consideration cost (10% of total transaction amount) is also added to the deduction. Consideration Fees allows us to help you make an offer if there are any slight changes to the Stock price when trading begins. If your trade is executed at less than the exact market price,the difference will be returned to your Cash Balance.(only applicable to Buy mandate)

• Once the market opens, a buy mandate is sent to the Stock Market.
• In order for the purchase to be completed, the market is searched for a willing seller at the particular price you bid. If a seller is found, your trade is completed.
• Stock is added to your portfolio.
• In the case that a seller is not found at close of market, the transaction is in pending state till next trading day.

NB: Transactions are only cancelled when the market price is greater than the bid price and funds are returned to your Cash Balance.

In the case that you’re looking to sell some Stocks,

• Place mandate to sell
• The market is searched for willing buyers at your selling price
• If a match is made, transaction is carried out.
• In the case that buyers are not found at the close of the trading day, the sell mandate is held for another trading day until transaction is completed.

NB: Transactions are only cancelled when the market price is greater or lower than the sell price and funds are returned to your Cash Balance.

What is Partial Fulfillment?

This happens when part of your transaction is completed while the rest is kept pending. For example, when you decide to buy 50,000 stocks at N5 each, the market is searched for willing sellers. At the end of the trading day, only 10,000 stocks might be available at N5. This means that we will partially fulfill your order and buy the 10,000 stocks on your behalf.
If the price is still within your order range, the system makes an order for the pending units by the next trading day, else your cash balance is credited with the pending amount if the price is higher.

NB: While the total amount will be deducted initially, note that only the amount bought will be debited and the rest of the money is returned to your Cash Balance.

At the end of the day, the process of buying and selling Stocks can take between 1 and 3 working days (T+3) to be complete and that is why your Stocks may not appear in your portfolio immediately.

You can find your purchased stock on the “My Portfolio” page. Here, you can see the performance of your assets and take action accordingly.

Happy Trading Esteemed Shareholder!

Watch the video to learn more about investing in Stocks