The Securities Market has remained a veritable tool for wealth creation and management over the years. The Nigerian Stock Market is only just emerging with strong potentials for further deepening as evidenced by the current recapitalization efforts of the various sectors of the finance industry. The recent Federal Government decision to float N140bn worth of bonds would further deepen and diversify the capital market creating liquidity and vibrancy in the sector.

The impetus to make investment in stocks is supported by the wide array of benefits that can expectedly accrue to investors:

DIVIDEND
•  Cash Dividend
Payment made to an equity investor from profit after tax based on units of shares held at the close of the company's register.

•  Script Dividend (Bonus shares)
Shares issued to a company's existing shareholders free of any payment.

CAPITAL GAIN
Increase in value (share price) of a stock over a period of time.

RIGHTS ISSUE
This is an invitation extended to existing shareholders only to buy additional shares of the company at a discounted or reduced price from the market price. A shareholder can also make profit by selling the Rights if he decides not to exercise it.

MARKETABILITY AND LIQUIDITY OF THE INVESTMENT
The ready market, the short turnover period and the ease of converting investments in stocks into cash compared with investment in real estates is another driver for the equity investment. The Nigerian Stock Exchange currently deals on T + 3 (4 days) convertibility to cash.

SECURITY AND SAFETY
Unlike other physical assets such as houses, cars and general household properties that are exposed to robberies, fire incidences, etc, shareholders have their names and investments recorded in the Register of Members of such companies where they hold shares and also with the Depository of the Central Securities Clearing System (CSCS) and so whether the physical share/bond certificates are destroyed or are stolen, their investments are secured. The certificates are replaceable at no extra cost to such shareholders.

HEDGE AGAINST INFLATION
Share prices co - moves in same direction with inflation and so reduces the impact of inflationary pressure on wealth.

FOREIGN EXCHANGE RISK MANAGEMENT
Continuous depreciation of the Naira underlies corporate valuation, however remotely, which in turn reflects on stock valuation.

COLLATERAL FOR LOAN
Investment in stocks can be used as collateral to obtain loan from banks.

ANNUAL GENERAL MEETING
Opportunities exist for shareholders of quoted companies to attend Annual General Meeting, exercise the right to vote and be voted for into directorship positions of quoted companies especially for shareholders with substantial equity share holdings in such companies.

SHARE TRANSMISSION
Investment in stocks provides for an easy means of bequeathing the estate (in the form of stocks) of a deceased to the beneficiaries in line with the Will Instrument. This is usually carried out through the share transmission mechanism making Will execution easier.