STOCK BROKER

Buying and selling of shares of companies are done daily on the Nigerian Stock Exchange (NSE). Equities change hands; from one individual to another. Stocks of companies are traded daily on the exchange. All these are done through a stock broker.
A stock broker is a person legally authorized by the Nigerian Stock Exchange to buy and sell stocks on behalf of investors/clients.
For every buying or selling carried out, the investor is charged certain percentage which is called commission or brokerage fee. Though there are indications that the brokerage fee will further be reduced to the barest minimum so as to attract investors to the market. The amount being charges now are thus:
• 2.355% of the value of shares you are buying
• 2.6475% of the value of shares you are selling
Example:
If the selling price of a stock is =N3
Number of units you want to purchase is =1000units
So the total value of the stock is :3×1000 =N3000
Then, buying brokerage fee = N(2.355÷100 ×3000)
Selling brokerage fee = N(2.6475÷100 ×3000)
In the same vein, the fees charged by the stock brokers are not absorbed by them alone. It is further divided among sectors of some department on the exchange. It is also important to note that you only pay commission/brokerage fee if you are buying from the secondary market.