Second tier security market is an appendage of stock exchange; all therefore serve to assist it but it is less restricted to some extent.

Advantages of SSM to the companies

  1. The market provides opportunity of buying and selling of share of companies.
  2. It is an avenue for companies and investors to raise more capital.
  3. SSM also assists and complement the efforts of the stock exchange market.
  4. Provision of short and long term funds to companies which can lead to expansion in operation and prospects for growth.
  5. It also set up to enhance investment avenues and the development of Nigeria economy.
  6. It provides financial advice to companies in area to invest their funds.
  7. It also saves advertising cost when shares are being floated.

Advantages of SSM to the investing public

  1. It affords investors the opportunity of assessing the profitability and efficiency of companies so as to know the companies to invest.
  2. Investors are provided with the opportunity of obtaining loans.
  3. It provides avenue for long term investment.
  4. Investors enjoy enhanced ability in buying and selling of shares.
  5. Investors have the assurance of enjoying 10% of equity capital of companies operating at SSM.


  2. OFFER FOR SALE: This is an offer to the public to sell part of the equity of existing shareholders of a company to investors.
  3. OFFER BY INTRODUCTION: A company can allow entry after it has sold 10% of its equity to the public.
  4. OFFER BY PLACEMENT: Here, stock broker’s undertaker to look for buyers for at least 25% of the companies share.
  5. OFFER BY SUBSCRIPTION: Offer for subscription in an offer to sell new shares of a company to interested investors.

          The main requirements for admission into the SSM are as follows;

  1. Companies must be registered as public limited companies under the provision of the companies ACT 1968.
  2. Companies admitted into the SSM are expected to sign a “General Undertaking” with the Nigeria stock exchange.
  3. Companies must have not less than 100 shareholders.
  4. Companies must submit the financial statements of its last three years in the business to Nigerian stock exchange
  5. At least 10% or N50,000 of the equity capital of companies admitted must   be made available to the public, except in the case of an offer by      introduction.
  6. No shareholder may have either directly or indirectly more than 75% of the issued share capital of the company.


  1. ARBITRAGE: This is the practice of switching fund from one market to another in order to exploit price or yield profit.
  2. CONTANGO: This is a charge paid by a speculator for deferring settlement    from one account day to the next on account of shares           purchased.
  3. ACCOUNT DAY: This is also known settlement day is the second day on which settlement of transaction is completed by the transfer of money          due for securities purchased.
  4. TICKET DAY: This is one of the two days in which the broker passes to the jobber the ticket which shows particular for the transaction. This also       helps in arrangement for final settlement on account day.
  5. ISSUING HOUSES: These are financial institutions which specialize in making public issues of share on behalf of public limited companies.
  6. BEARER SECURITIES: These are securities which are transferred by the handing them over without change of registration.
  7. INSCRIBED SECURITIES: These are securities in which certificates are not given to the buyer. The ownership will only be documented in the register.
  8. RIGHT ISSUE: This refers to the offer of new shares or issues to existing shareholders of a company sometimes at a reduced price.
  9. BLUE PRINT: These are the best industrial shares associated with large naturally known companies.
  10. EQUITY: These are normally ordinary shares. The shares which carry the right to what remains of profit and capital after all prior interests have been satisfied.
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