Guides

• Markets
  
• Investment
  
• Stock Quotes
  
• Economy
  
• Money
  
• Reference
  

Channels

• Business Home
  
• Entertainment
  
• News
  
• Paging
  
• Lifestyles
  
• Personalities
  
• NigeriaExchange
  
• More...
  

The SSM operates in the same way as the first-tier market by providing a forum for the buying or selling of the shares of companies in the market. Trading on the SSM is subject to the normal dealing rules of the Stock Exchange. Investors in the SSM are protected by The Nigerian Stock Exchange on the same terms as investors in listed securities.

Requirements For Admission Into The SSM

Requirements for admission into the SSM include:

• Financial statements of the last three years of operations must be submitted to the Nigerian Stock Exchange. The date of the last audited accounts must be no more than nine months prior to the date of application to The Stock Exchange.
• Companies must be registered as Public Limited Companies under the provisions of the Companies Act of 1968.
• Companies are expected to sign a "General Undertaking" with The Nigerian Stock Exchange when admitted into the SSM .
• The number of shareholders cannot be less than one hundred (100).
• At least 10% or N50,000.00 (fifty thousand naira) of the equity capital of companies admitted must be made available to the public, except in the case of an "Offer by Introduction".
• No shareholder may have, either directly or indirectly, more than 75% of the issued share capital of the company.

Methods of Admission Into The SSM

Offer by Introduction
An "Offer by Introduction" occurs when at least 10% of a company's equity is already held by the public. The company may then be permitted to deal on the SSM, without offering any new shares, after an introduction into the market by the Nigerian Stock Exchange

Placement Offer
Here, the underwriter(e.g stock-broker or other financial house) offer to find buyers for the shares of the company. At least 25% of the shares placed must be made available to underwriters to ensure a wider disbursion.

Offer for Sale
This is an offer to sell part of the equity of existing shareholders to new investors.

Offer for Subscription
This is an offer to sell new shares of the company to investors Each method of entry should be carefully considered so as to adopt the most suitable approach for achieving the objectives of the company and its shareholders.