Bonus shares and your CSCS account statement
June 26th, 2009 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
For most of you reading this piece, the words bonus shares and CSCS are definitely not new words. These are words that most investors have become conversant with over the years. We would most likely have benefited from bonus shares declared by management to be given out to investors at one time or the other. At least those who are fond of banking, conglomerate or oil company stocks would most likely have received bonus shares. On the other hand, since the inception of the CSCS (Central Securities and Clearing System) which was set up to keep proper updated records of stock transaction amongst other things, investors must now have a CSCS account opened for them by their brokers before any stock business can be executed. What then is the correlation between both?
CSCS account statement
Just as a bank account statement gives the most accurate and recent information on a customers account,so also the CSCS account statement. An investors CSCS account statement truly gives the current state of the investments by the owner as at the time it is generated. Most times, if you are in doubt as to the authenticity of what you see in you account with your broker, request for your CSCS account statement.
MORE IMPORTANTLY.
It is important for investors to note that the shares that are reflected in the statements given by stockbrokers are most times shares that are purchased from the secondary market. In other words, it is only the shares that a broker bought for a client that will be reflected in the brokers account. In the event that an investor benefits from a bonus issue, the number of units accrual to him will not be reflected in his acoount with the stockbrokers. However, it will be reflected in his CSCS statement.
The implication
The implication is that if an investor does not regularly request for the CSCS statement to complement the records of his stockbroker, he stands the risk of not maximizing his portfolio. Simply put, he has money that he does not know about because it was not reflected in the statement from the brokers. In some cases, some brokers are effective such that they always forward their clients CSCS statement to them. On the other hand, some brokers don’t bother themselves and never even mention it.
It is very important to keep abreast with your portfolio especially in the area of knowing the current state of your holdings. Always endeavour to request for your CSCS statements so that you are able to maximize every bit of your funds in the stock market.
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Most atimes people may willing to invest into stock market nigeria,but they may encounter some difficulties on how to invest.one examply is my dad i adviced him to invest into stockmarket nigeria he did but later get confused on how to go about it .my little advice is if there’s any possibility to make invest more simpler so that lay man can also invest into stockmarket instead of going into foreign investment why there’s stockmarket in nigeria i hope am making little sence.thank for good improvement in nigeria.
Wao that was really nice n u know it a real insight to all investors .I do commend your efforts N that of all the managements of S.T Nigeria…@…LEGACY WORLD.@
I bought FTN cocoa 2008 which the company declear bonus of 1 for 10. Up till now my accoun on cscs has not been credited. What can I do?
Good article. I have stocks, I also have a CSCS account, how can I request for my CSCS statement.
Thanks
Av bought stocks both in d 2ndary and primary market,and av always requested 4my cscs account.are u saying dat i should ask 4 my brocker’s account???
I am a student, how do i monitor my account? And how do i know when bonuses are declared and when dividend are also declared. In case i dont trust my stock broker. pls, help me out. I dont know when dividend are been posted and beside i am new in this business. I got started early this year.
If you subscribe for it, you can view your CSCS account online and see all the stocks you have. Proshareng.com update thier site regularly with news on mrket update, declared dividends and bonuses. But you can only monitor your portfolio to an extent, a good broker you can trust is still very important.
@ adeniyi olusanmi, you need to exercise patience. Sometimes, it takes time for the bonus to reflect in your CSCS account. The bonus declared by Diamond bank in August 2008 reflected in investors account in April 2009. Thats 8 months, so be patient.
@ Abdullahi, all you need do to get your CSCS statement is ask your broker to print it out for you.
thank you for this article. i have a cscs account and i will like to access it online. kindly give me the cscs account website.
I bought Fidelity Bank’s shares at the 2007 public offer and have been informed by my family of the arrival of the certificate. I have been out of the country for almost two years now and that makes it difficult for me to monitor my holdings. Please, advise how I may open a CSCS account I, buy other shares and keep track of them while away from home.
pls i want to check my account. i have my cscs number, hw do i go about it?
I love what u’re doing for us. Please keep it up ! We still need some enlightenment in the rural areas
You guys at Stockmarketnigeria are so wonderful. I dont live in the country at the moment but I have a substantial amount of investment in Nigeria Stock market. Your site is quite helpful. I will advice you concentrate more on awareness of this site so many people particularly those of us living abroad will get to know more about the site. More crease to your elbow guys
I have bought intercontinental bank share public offer in 2006 and up to now never receive my certificate in my box so sir i want your advice on how i can assest my certificate. Thank you.
I hav not recieved my share certificate of the public offer of firstbank of nigeria plc and even their bonus share of 1 for 4 declared last year.
I`ve shares in some banks in Nigeria, but have not registered them with any cscs coy, pls aw do i go abt doing this?
One Love 9ja!
Kudos!I hv a cscs acct wt a particular stock broker.How can I access my cscs acct and statement on line about transactions made on it?
Tnx 4 d gd work. I’m an investor, Pls txt me d web of cscs so dat i monitor my investment &also an honest broker dat will manage sum part of my portfolio.