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Introduction
Afrinvest and meristem are Nigeria stock exchange markets that have proven to be lucrative investment platforms but it takes one who is familiar with or has the right knowledge on how to trade it to make the most of their investment and to also ensure that they don’t lose their money.
Investing in the Nigeria stock exchange market is a risky investment so getting connected to the right people or firm is essential as this set of people or firms are experts in their fields and will always come up with the right choice, offer financial advice and ensure the safety of their client’s investment.
Several institutions in Nigeria offer assistance to anyone who wants to invest or trade in the Nigeria stock exchange market. Let’s take a moment to examine the meaning of stock and its related terms below.
Stock Definition
A stock represents fractional ownership of equity in an organization or corporation. Stock is an investment that represents a share, or partial ownership, of a company. Stocks are one of the best ways to build wealth. Stock owners are entitled to a proportion of the corporation’s assets and profits equal to the worth of the stock.
A person that owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings. A shareholder may also be referred to as a stockholder. The terms “stock”, “shares”, and “equity” are used interchangeably in modern financial language. The stock market consists of exchanges where investors can buy and sell individual shares of a company.
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Stockbroking Definition
Stockbroking can be defined as a service which allows retail and institutional investors to buy and sell equities.
Typically a stockbroking firm will charge a commission on the trades it makes on a client’s behalf or a fee for retaining its services. Stock exchange place strict regulations on who can trade shares directly on their book, which is why most individual investors hoping to trade shares will do so via a stockbroker.
Stockbroker Definition
A stockbroker is a person who is a financial professional who carries out orders in the stock market on behalf of clients.
There are different services the stockbroker provides and some of these services include:
- Stockbrokers will complete orders on your behalf but do not offer any advice.
- Stockbrokers will offer advice on where to trade but only trade on orders submitted by you.
- Stockbrokers will trade on your behalf, executing trades without your input.
Brokerage Firms
Brokerage firms and broker-dealer companies are also sometimes referred to as stockbrokers as they are financial institutions that help you buy and sell securities. They act as the middle man between the buyer and the sellers.
There are three types of brokerage firms namely:
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Full-Service Brokerage Firm:
A full-service brokerage firm is a brokerage firm that offers varieties of financial services to its client and some of these services includes providing a range of financial services, banking services as well as consulting services while also performing the role of helping you buy and sell securities.
They also perform other functions such as providing trust services and wealth and asset management and it is seen as the most expensive type of brokerage firm.
Discount Service Brokerage Firm:
A discount brokerage firm is a brokerage firm that traditionally doesn’t provide any financial, consulting or planning service. They perform the role of buying and selling securities on behalf of their clients providing financial products, access to mutual funds, banking products and other services. Their charges are cheaper than the full-service brokerage firm.
Online Brokerage Firm:
It’s also called direct access stockbroker, they offer service to active day traders with the smallest commission. They offer access to multiple exchanges, market markets and electronic communication networks ( ECN).
Afrinvest Vs Meristem: Which Is Better For Stock Trading
Afrinvest
Afrinvest is an independent investment banking firm whose focus is on West Africa.
Wikipedia defined Afrinvest as a financial advisory firm with a focus on West Africa. It is active in four principal investment areas: investment banking, securities trading, asset management and investment research. It is regulated by the security and Exchange Commission(SEC).
Their investment banking subsidiary provides a full range of capital raising and financial advisory services to meet the needs of corporate and institutional clients. Afrivest is one of the top approved lists of Nigerian stockbrokers.
Afrinvest owns two operating subsidiaries namely:
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Afrinvest Securities Limited(ASL)
This is a broker-dealer and a dealing member of the Nigerian Stock Exchange (NSE. They have a subsidiary institution known as Afrinvestor which is an online trading portal in the Nigerian stock exchange market in a survey carried out on online trading portals in the Nigerian stock market in 2016 they emerged third.
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Afrinvest Asset Management Limited (AAML)
is a licensed portfolio manager and is the fund manager of two mutual funds listed on the NSE, the Nigeria international debt fund (NIDF) and the Afrinvest equity fund (AEF).
Meristem Securities Limited
Meristem securities limited is a Nigeria capital market regulated by the Securities and Exchange Commission. (SEC),The company got its name from a tissue called ‘meristem’ and found in most plants containing undifferentiated cells which are known as meristematic cells, this is found in zones of the plant where growth will occur where and this is reflected in the company slogan ‘let us grow wealth for you.
The company offers mergers and acquisitions, divestitures, restructuring, valuation and debt and equity capital raising advisory services.
The company has six subsidiaries: Meristem wealth, Meristem Stockbrokers, Meristem Capital, Meristem Trustees, Meristem Finance, and Meristem Registrars.
The Subsidiary Under Meristem Security That Deals With Stock, And Trading The Stock Market Is The Meristem Stockbrokers.
Meristem Stockbrokers
Meristem stockbrokers is a wholly independent subsidiary of Meristem Security Limited(MSL), it provides holistic stockbroking and research services to a wide range of clients and has remained a leading player in Nigeria’s investment market and is known for its solid reputation as a highly professional and it’s focused on ensuring the best for its client.
It launched the first online stock trading platform in Nigeria known as the MeriTrade and its demo stimulation for learning called per game. In 2017, Meristem Stockbrokers Limited was responsible for 13.3% of the value of stocks traded on the floor of the Nigerian Stock Exchange.
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MeriTrade:
Is an online platform whose main role is to allow users to trade stocks online on the Nigeria Stock exchange. In 2016, MeriTrade emerged first in a survey carried out on online trading portals in the Nigerian stock market by Proshare Limited.
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MeriGame
Is an investment game from MeriTrade traders to learn how to buy stocks under natural market conditions as it has been made to look exactly like the stocks traded on the Nigerian Stock Exchange.
Difference Between Afrinvest And Meristem
- Afrinvest deals with high profiled individuals, companies or corporations while Meristem anyone can make use of it.
- Afrinvest charge is expensive compared to that of meristem
- Meristem provides more customer service than Afrinvest and majors in only four principle investment areas for their clients.
- Afrinvest’s focus is on West Africa while Meristem deals only with Nigerian clients.
Which Is Better?
When it comes to trading in the stock market, making use of the Meristem Security platform is preferable to make use of, other than the fact that it’s more affordable and offers a more wide array of services to its clients, Meristem also offers investment opportunities to different sets or categories of people ranging from male, female and even children.
Meristem is good for people who don’t want to trade high in the stock exchange market and who want exceptional customer service also these customers could leverage the MeriGame platform that offers clients the opportunity to learn about the stock exchange market even before going into it.
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Afrinvest, on the other hand, is for high profiled clients, corporations and institutions and although they offer top nought services, they are classified as a high profiled company and they are better to us when it comes to organisations and institutions that want to go into stock trading.
Conclusion
Afrinvest and Meristem securities are one of the best brokerage firms in Nigeria, Although Meristem is less expensive to make use of, they both offer top-notch services to their clients. So depending on what a person or firm has in mind to do, they could choose the one that best suits them. It’s advisable to conduct research, ask the necessary questions and get all the right information one needs before making use of any investment platform or institution.
