In every capital market, it is expedient to have a benchmark for making decisions and a tool for envisaging the risk associated with such decisions. Thus, ratings play an important role in the Nigerian Capital Market and the global financial system at large. It is a tool needed to promote the development and seamless running [...]

Custodian of securities means a person who has custody, as a bailee, of securities or certificate issued in the investor’s name with the investor’s name appearing in the issuer’s register as the beneficial owner of the securities. Functions Registered custodian of securities shall have the following functions, amongst others: Maintaining accounts of securities of a [...]

Market maker means any specialist permitted to act as a dealer, any dealer acting in the position of a block positioner, any dealer who, with respect to security, holds himself out as being ready to buy and sell such securities for his own account on a regular and continuous basis. The market-making system may be [...]

A portfolio manager holds a very important role when it comes to fund investing. A portfolio manager is a person or institution with the duty to invest a fund's assets, implement the fund's investment strategies, and manage day-to-day portfolio management. Portfolio management is a process by which investments that meet the long-term financial objectives and [...]

The entity authorized to engage in the business of providing investment advice to others or issuing reports or analyses regarding securities, for compensation is known as an Investment Adviser. Functions Investment advisers may perform the following functions: Investment advisory services; Making recommendations as to types of securities to buy or sell; Publication of financial market [...]

The fiduciary role of a trustee has its origin from the English Common Law and the principles of Equity. This concept has authorized the trustee to be an independent third party saddled with the responsibility of protecting conflicting interests between the issuer and investor in the financial market. A trustee is usually hired by an [...]

Receiving banks are banks designated by an issuer to receive proceeds. It is a scheduled bank carrying on all or any of the following issue related activities namely; acceptance of application and application monies; acceptance of allotment or call monies; refund of application monies and payment of a dividend or interest warrants. Functions Banker to [...]

A Sub-Broker is a financial operator registered by the Securities and Exchange Commission (SEC) to act on behalf of a broker/dealer as its agent for assisting investors in buying, selling or dealing in securities through a broker. Functions A registered sub-broker shall have the following functions which shall be carried out only through its sponsoring [...]

  Investors have engaged the services of brokers or dealers for easy participation in the financial world as the financial world can be full of mysteries and risks for investors especially when the languages and terms of the market are not understood. Thus, a broker can be seen to be a financial intermediary executing order [...]

 Underwriting simply means an arrangement where an underwriter undertakes for an authorized commission, to pay an issuer of securities an amount based on the price of the securities determined at a predetermined date in conjunction with the issuer and the issuing house with a view to resale not as a form of investment. Hence, underwriting [...]

An issuing house is a financial intermediary assigned to provide financial advisory services to companies, whether quoted or unquoted companies, federal government agencies, and government institutions with reference to investments especially when these companies or government institutions need additional funds to finance capital projects from the capital market. The issuing house plays a vital role [...]