Not many know the right answer.

In March, you probably heard about the demutualization of the Nigerian Stock Exchange and how its name changed. It's okay to be lost about what all these mean, many are. So, we thought to help with an explainer.

Like many other exchanges across the world, the exchange is privately owned. If this is new to you, there are many like you. �

� A stock exchange is a marketplace where shares of various companies are bought and sold.

At inception, the exchange was set up as a mutual company [not mutual funds]. That is, a company owned by customers.

This mutual structure comes with a number of limits. Stears Business highlighted them as:

1. Low trading volumes
2. Weak stance against the competition

In essence, the demutualization process was about reworking this mutual structure. Today, the Nigerian Stock Exchange is now known as the Nigerian Exchange (NGX) and operates as a public company.

To retain control in NGX, the Nigerian Stock Exchange was restructured into a holding company: the Nigerian Exchange Group (NGX Group).

� A holding company is one that is created to buy and own shares of other companies.
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Learn more in the market slice report for March here: https://cowrywise.com/blog/mutual-funds-march-2021/

AdvisorOpe:
Not many know the right answer.

In March, you probably heard about the demutualization of the Nigerian Stock Exchange and how its name changed. It's okay to be lost about what all these mean, many are. So, we thought to help with an explainer.

Like many other exchanges across the world, the exchange is privately owned. If this is new to you, there are many like you. �

� A stock exchange is a marketplace where shares of various companies are bought and sold.

At inception, the exchange was set up as a mutual company [not mutual funds]. That is, a company owned by customers.

This mutual structure comes with a number of limits. Stears Business highlighted them as:

1. Low trading volumes
2. Weak stance against the competition

In essence, the demutualization process was about reworking this mutual structure. Today, the Nigerian Stock Exchange is now known as the Nigerian Exchange (NGX) and operates as a public company.

To retain control in NGX, the Nigerian Stock Exchange was restructured into a holding company: the Nigerian Exchange Group (NGX Group).

� A holding company is one that is created to buy and own shares of other companies.
____
Learn more in the market slice report for March here: https://cowrywise.com/blog/mutual-funds-march-2021/

Whether it's called the Nigerian Stock Exchange or the Nigeria Exchange no one gives a damn!