The Securities and Exchange Commission (SEC) has urged prospective investors in the capital market to seek knowledge before investing in the sector.
The Acting Director-General of the commission, Ms Mary Uduk, made the call at a one-day enlightenment programme for the Nigerian Army Ordinance School, Ojo Cantonment, Lagos.
A statement by Mrs Efe Ebelo, Head, Corporate Communications of SEC, Abuja on Sunday, said that Uduk was represented by Mr Stephen Falomo, the Head Lagos Zonal Office of the commission.
Uduk noted that there were good opportunities to achieve decent returns on investment in the market, but it required adequate knowledge.
The acting director-general also urged investors to diversify their investments in various assets of the sector to mitigate risks and exposure.
According to her, an investor must be smart to avoid some obvious mistakes which can lead to capital erosion through mixed bag of investments.
“Investment in the Nigerian capital market, just as in any other capital market across the world is a mixed bag of fortunes.
“A smart investor is expected to have this consciousness at the back of his mind at all times, even as he wades into the market to pick his instrument of investments,’’ she explained.
The acting D-G said the commission had put some initiatives in place to boost investors’ confidence.
“We have the e-dividend mandate system, the Direct Cash Settlement as well as multiple subscriptions in place.
“Investors have to take ownership of their investments.
“They have to be able to monitor their investments, attend annual general meetings as well as read the annual reports sent out to them.
“We also protect them through the National Investors Protection Fund (NIPF) Risk-Based supervision that enables us to supervise the operators to ensure they do what they are supposed to do,’’ she said.