Investment advisers always advise that buying shares and stocks is one of the best investments you can make. The problem, however, is that many people don’t know the right shares to purchase. Others don’t know how to purchase the shares.
If you’re reading this post, one thing’s for sure: you want to buy MTN shares in Nigeria. MTN is the number one telecommunication company in Nigeria so it’s not surprising that its stock is among the best performers in the market.
In this post, you’ll find all the information you need to know about buying MTN shares in Nigeria.
MTN Nigeria is part of Africa’s largest mobile phone operator, MTN Group. MTN was the first GSM network to make a call after the Nigerian Communications Commission’s GSM auction in 2001.
The company began commercial operations in Lagos, Abuja, and Port Harcourt. MTN spent $285m for a Nigerian GSM license in 2001. Nigeria’s mobile telecommunications infrastructure has received about $1.8 billion.
MTN has continuously expanded across Nigeria since August 2001. It now serves 223 cities and towns, 10,000 villages and communities across 36 states and, Abuja. Many of these villages and settlements now have telecommunications.
MTN Nigeria recently upgraded its network capacity to incorporate a new numbering range with the prefix 0806, making MTN the first GSM network in Nigeria to implement an extra numbering system.
MTN Nigeria announced a self-help toll-free 181 customer-care line to improve customer service. Subscribers can call and get free answers to frequently asked concerns.
MTN Group sponsored the CAF Champions League and APOEL FC, 2009–10 and 2011–12 UEFA Champions League participants. The company sponsors South Africa’s rugby team since 2017.
MTN’s purpose is to spur Nigeria’s economic growth and development through world-class communications and innovative CSR initiatives.
Steps On How To Buy MTN Shares
Here are three steps on how to buy MTN shares in Nigeria.
1. Open A Stockbroking Account
Purchasing MTN shares means you’re venturing into stocks trading. You can’t just enter the stock market and buy shares, you need to create a stockbroking account. In other words, you can only purchase MTN shares via a licensed stockbroker.
The stock broker you use must be official and registered with the Nigerian Stock Exchange (NSE). Many stock broking companies are available in Nigeria. You just need to do your research and ask questions to find the right one to invest with. Some commercial banks also offer stock broking services.
Since what you’re interested in is buying MTN shares, you should inquire about the stock broker you choose in that regard. Some stock broking companies are experts in specific fields.
Opening a stock broking account is just like opening a bank account. In other words, you’ll have to fill out forms and other documentation, provide a government issued-ID, and other regulatory requirements.
Usually, just like when opening a domiciliary account, you’ll have to make a minimum deposit to activate your stock broker account. Nevertheless, you can still find stock broking companies that accept zero account opening balances.
2. Fund Your Account
Ultimately, whether you open your broker account with a zero balance or not, you’ll have to fund your account. You need the money to purchase the MTN shares. How much you deposit will depend on the price of the shares and how many shares you want to buy.
The prices of MTN shares change from time to time. Nevertheless, one share is usually not expensive. You should expect a price between N100 to N300 (yes, it’s that cheap). Consequently, you should know that you can’t buy just one or two shares if you want to invest.
If you buy one MTN share at N100, and the price appreciates and you sell at N300, your gain is just N200. It makes no actual profit and no sense.
Conversely, if you buy ten thousand MTN shares at N100 each (i.e N1,000,000), and the price appreciates and you sell at N300 each, your gain is N2,000,000. That’s an actual profit.
You can fund your stock broker account via the traditional method, by depositing cash at the bank. You can also use contemporary methods like money transfer and online card payment.
3. Buy Your Shares
Technically, you don’t buy the MTN shares yourself. Instead, your stock broker buys and manages them on your behalf. You can only monitor your investment from your stock broker account, and you can choose to sell your shares at any time.
Your shares can appreciate and depreciate at any time too. Stock trading is not very different from other speculative trades such as forex and cryptocurrency. The primary difference is that the stock market is regulated – by the NSE in Nigeria.
Hence, buying stocks is more legitimate and less risky than buying forex or crypto.
When it’s time to sell your shares, you’ll need a buyer with a stock broker account also. The buyer could be registered with your stock broker or a different one.
Once you initiate the selling procedure, your stock broker will handle the exchange. Once the trade is concluded, you’ll receive your funds.
MTN shares may be one of the best shares in Nigeria to buy, depending on the current market price. Nevertheless, whenever you decide to buy your MTN shares, you can use the information in this post as your guide.