Please someone explain to me

Simple tin u don’t know

MIKOLOWISKA:
Please someone explain to me

it means the 50k is the norminal value of the share and the price is 12naira ..the shares is being sold at premium...

The company valued the shares at 50k each and are selling it for 12naira...that's the explanation. Pls get back to me if further understanding is necessary

The book value of the shares is just 50k.

However it is sold to you and traded at the time of sale for N12.

Understand?

EMriss:
The company valued the shares at 50k each and are selling it for 12naira...that's the explanation. Pls get back to me if further understanding is necessary

In other words, N12 is the market value and N11.50 is the premium on each share?

Rilwayne001:


In other words, N12 is the market value and N11.50 is the premium on each share?

yeah...share premium is N11.50k

EMriss:
yeah...share premium is N11.50k

Could you then tell me how the investors get to profit on each share they purchase? Let me suppose that it's after the company must have accounted for its revenue at the end if the year. Where the profit earned will serve as dividend to the ordinary shareholders after preferences shareholders and debenture holders must have been settled.
Am I having a wrong supposition? Or better still why do we have investors always following the trend of the market situations if their dividends would not be determined until at the end of the year?

I'm sorry to be bothering you this much oh, I'm actually a finance student, but here in school, we are made to cram and not made to understand these things proper. I really wish to understand these things very well because I don't know where I may end up tomorrow. I don't want to be giving the excuse of the worse situation of Nigerian universities.

We were actually taught COST OF CAPITAL, and I can definitely relate the scenario of the stock exchange to it.

EMriss:
it means the 50k is the norminal value of the share and the price is 12naira ..the shares is being sold at premium...

what is nominal value if price is 12

MIKOLOWISKA:
what is nominal value if price is 12

norminal value means the amount the company recorded as the book value I.e original value of the share

Rilwayne001:


Could you then tell me how the investors get to profit on each share they purchase? Let me suppose that it's after the company must have accounted for its revenue at the end if the year. Where the profit earned will serve as dividend to the ordinary shareholders after preferences shareholders and debenture holders must have been settled.
Am I having a wrong supposition? Or better still why do we have investors always following the trend of the market situations if their dividends would not be determined until at the end of the year?

I'm sorry to be bothering you this much oh, I'm actually a finance student, but here in school, we are made to cram and not made to understand these things proper. I really wish to understand these things very well because I don't know where I may end up tomorrow. I don't want to be giving the excuse of the worse situation of Nigerian universities.

We were actually taught COST OF CAPITAL, and I can definitely relate the scenario of the stock exchange to it.

the investor gets profit I.e dividend on share acquired after the company must have declared profit for a particular year and wishes to pay some or all of it as dividends...the company may pay 50k dividend on each share ...YOU ENJOY YEARLY DIVIDEND AS AN ORDINARY SHARE HOLDER...meaning you get returns every year from your one time share acquisition

hello.This is very interesting
pls can some really break it down,i mean the stock market of a thing.
what do they mean by stock market?
How does it operate and who and how can be part of it
How can some gain or make profit from d market
What are they really selling in d stock market.
pls help a bushman man.
thanks

EMriss:
norminal value means the amount the company recorded as the book value I.e original value of the share

if I have a 50 million as capital. Is my company worth 25 million (50kobo) or 600 million (12Naira)

MIKOLOWISKA:
if I have a 50 million as capital. Is my company worth 25 million (50kobo) or 600 million (12Naira)

600million

jomolu:
hello.This is very interesting
pls can some really break it down,i mean the stock market of a thing.
what do they mean by stock market?
How does it operate and who and how can be part of it
How can some gain or make profit from d market
What are they really selling in d stock market.
pls help a bushman man.
thanks

stock market...check the google

What they do; you buy and sell shares/securities

EMriss:
the investor gets profit I.e dividend on share acquired after the company must have declared profit for a particular year and wishes to pay some or all of it as dividends...the company may pay 50k dividend on each share ...YOU ENJOY YEARLY DIVIDEND AS AN ORDINARY SHARE HOLDER...meaning you get returns every year from your one time share acquisition

Exactly. I thought as much. Why do we have investors following events here https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/3902 every minute then? Could it be that they are just potential investors waiting for the best opportunity to invest?

Rilwayne001:


Exactly. I thought as much. Why do we have investors following events here https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/3902 every minute then? Could it be that they are just potential investors waiting for the best opportunity to invest?

probably

EMriss:
probably

Thank you bro. I really do appreciate.

MIKOLOWISKA:
if I have a 50 million as capital. Is my company worth 25 million (50kobo) or 600 million (12Naira)

Go back to school! You see the result of all the curses you rained on your teachers who were trying to help you. Loser!

The share price is 12 naira

naijjaman:


Go back to school! You see the result of all the curses you rained on your teachers who were trying to help you. Loser!

which school
Which curse
Which teacher
I'm not the cause of your frustration
Better go and ask which subject shares de under from primary to PhD

Village ppl have succeeded in your mataa

EMriss:
norminal value means the amount the company recorded as the book value I.e original value of the share

why isn't it 12 Naira jeje

I start fishpond with 12mill
I Sell 1million shares for 12 Naira each
Wetin concine 50 kobo again

My head pounding

MIKOLOWISKA:
which school
Which curse
Which teacher
I'm not the cause of your frustration
Better go and ask which subject shares de under from primary to PhD

Village ppl have succeeded in your mataa

Which school? Your school
Which Curse? From your parents.
Which Teacher? The ones who wanted to help you.

Keep losing while winners like me keep doing their thing. Olodo!

naijjaman:


Which school? Your school
Which Curse? From your parents.
Which Teacher? The ones who wanted to help you.

Keep losing while winners like me keep doing their thing. Olodo!

Kwanu

chloride6:
The book value of the shares is just 50k.
However it is sold to you and traded at the time of sale for N12.
Understand?

I see that means in lay mans language, I was overcharged by N11.50k right?

sellers4buyers:


I see that means in lay mans language, I was overcharged by N11.50k right?

In layman sense, you were overcharged. The reason why this disparity exist is in the authorized paid up capital.

MIKOLOWISKA:
why isn't it 12 Naira jeje

I start fishpond with 12mill
I Sell 1million shares for 12 Naira each
Wetin concine 50 kobo again

My head pounding

check my signature for my WhatsApp line.. Let's go

EMriss:
check my signature for my WhatsApp line.. Let's go

Don't know where signature is o

MIKOLOWISKA:
Don't know where signature is o

0808252 one one five eight

as an economics student..i need to kkow too

EMriss:
0808252 one one five eight

gorrit