- 1). Buy an American Depository Receipt (ADR). The easiest way to buy a Nigerian stock is through an ADR. ADR stocks are traded on local exchanges in the United States in United States dollars. They represent shares of stock in foreign companies. You can find ADRs through your brokerage web site or a free finance site like Google Finance or Yahoo! Finance.
- 2). Buy a Nigerian stock directly on the Nigerian Stock Exchange. The Nigerian Stock Exchange is located in Lagos and has 283 listed companies. You can buy a stock on a foreign exchange directly through your brokerage, though buying companies listed outside of major exchanges like the New York Stock Exchange, Euronext, NASDAQ, and American Stock Exchange are very expensive. Buying on a foreign exchange requires a transaction to be in the local currency of the exchange and exposes investors to currency risk in addition to the risk of the stock investment.
- 3). Buy through a Nigerian stock brokerage. If you have trustworthy contacts with a major bank or brokerage in Nigeria, you can buy stocks directly and hold them through the Nigerian brokerage. To do this, you will need to comply with both United States and Nigerian investment laws and have Nigerian Naira, the local currency, to buy the stock.
- 4). Buy a Nigerian company listed on a foreign market. Some companies choose to list on foreign markets for greater access to capital and liquidity. Some Nigerian companies are located on other major stock exchanges, such as the JSE Securities Exchange located in Johannesburg, South Africa.
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