REPS MOVES MOTION TO INVESTIGATE THE STAGNATION ON THE PRICE OF STOCK
At the plenary on Tuesday,members of the house of representative moved the motion to investigate the stagnation in the price of some stocks in the Nigeria stock exchange.
Hon Femi Fakeye who moved the motion said that investors who invest money in buying shares of public quoted companies expose their money to the risks inherent in operations of the given company and therefore reasonably expect to share in the profitability of such company in two basic ways which are: through dividend per share as declared by the company and the appreciation in the price of the company stock from time to time.
He also noted that the declaration made by the minister of finance of the performance of the Nigeria stock exchange(NSE) which she assorted to be the best in the world at the moment based on the upward appreciation in the shares of some public limited companies (PLC) listed in the Nigeria stock exchange.
He expressed that the situation has direct effect of short changing investors in the stock of such companies, as such investors do neither earn dividend nor have any growth in the quoted price of their investment. He also noted that if this trend should continue, it could be a disincentive to the investing public.