NSE, Morgan Stanley Partner for Maiden Investors Clinic
Category: Capital Market
February 10, 2012
The Nigerian Stock Exchange in partnership with Morgan Stanley, a Global Institutional Securities and Wealth Management firm, will be conducting the maiden edition of its Investors’ Clinic Series on February 15, 2012 in Lagos.
The one-day clinic will have in attendance top retail investors from Dealing Member firms across the country, coming in to share their investment experiences as well as learn from experts, strategies on how to properly structure their investment portfolios.
This is one of the new investor education initiatives designed by the Nigerian Bourse to address the prevailing low investor confidence issue in the market.
The Chief Executive Officer of The Exchange, Mr Oscar Onyema said that The Exchange developed this initiative in recognition of the need to have a local retail investor base with a good understanding of how to make sound investment decisions.
“The Investors’ Clinic will help in educating these investors about portfolio diversification principles and the risks and rewards associated with investing in the market. Their stockbrokers will also be exposed to ways of helping them restructure their portfolios to enable them make informed investment decisions” explained Onyema.
It was revealed that The Exchange, as part of a recent market segmentation exercise had classified listed companies into Large, Mid and Small Cap categories and stocks under Income and Growth groupings. By way of example, if a company’s stock is classified under the Income Stock group, it means that over a 5 year period, they have paid an average of 30% or more of their earnings in dividends, while Growth Stocks would be ones that have paid less than 30%, similarly over a 5 year period. “The Clinic will assist investors in understanding and applying this type of information when developing their investment portfolios”, he stressed.