A primary market is a market where fresh issue of shares are traded. It is trading in fresh issue of shares that has not been in existence.
In include offer for subscription, Initial public offer. There are no transaction costs in the transaction in the primary market on the part of Investor.

A secondary market is a market where pre existing shares are traded. It involves transaction done on the floor of the Nigerian Stock Exchange.

In other to sell shares, the certificate has to be dematerialized. The shareholder will sign the transferor part of a share transfer form, the stockbroking firm will prepare a certificate deposit for and forward it to the Registrar office for signature verification. If the Registrar deems it fit, they will send it to Central Securities Clearing Systems in electronic form. It can then be traded on the floor on The Nigerian Stock Exchange.

The main function of a stockboking firm is executing purchase and sale of securities in the Capital market. They earn commission from this service they render. They also perform some other value added services like portfolio management, Registrar liason.

A Registrar is a company that arranges with some other person for the making up of the register to be undertaken on behalf of the company by that person; it may be kept at the office of that person at which the work is done; but the register shall not be kept in the case of a company registered in Nigeria, at a place outside Nigeria. The Registrar keeps record of shareholders, their address as well as units held.

• Maintenance of Register of members
• Share transfer/sales; Signature verification
• Public offer of shares
• Issuance of certificates
• Dividends and Interest payment
• Planning and Conducting AGMs and EGMs
• Right Issue processing
• Scrip or Bonus Issue processing
• Payment of withholding Tax
• Capital Market Development
• Investor Protection
• Filing of Statutory Returns

When a stock is sold, a client gets paid T+3 days.

A bond is an instrument issued confirming the indebtedness of a company to the bond holders.

The Regulators include the following:

• SEC( Securities and Exchange Commission)
• NSE( Nigerian Stock Exchange)

The players include the following:

• Stockbrokers
• Financial Advisers
• Jobbers
• Stock market Agents
• Issuing  Houses
• Registrars
• NSE
• CSCS
• SEC