FBN Holdings (FBNH) Plc has asked investors in the nation’s capital market to always seek financial advice before making investment decisions to reap maximum returns.
The Chief Financial Officer of FBNH, Oyewale Ariyibi, gave the advice at the knowledge sharing session with Capital Market Correspondents Association of Nigeria (CAMCAN) on Thursday.
Ariyibi said financial advisers are proficient in guiding investors on the type of stocks to buy at the appropriate time to make good returns on their investment.
In his words; “As an investor, investing in financial market is not gamble or betting, you need financial adviser for investment decision. You should invest money you don’t have need for immediate use, invest for medium and long-term, and also invest in stocks that have good fundamentals for capital gains.”
Speaking on the theme: “Understanding Financial Statement for Business Reporting,” Ariyibi drew attention to the vital information encrypted in financial statement of a company.
“A financial statement represents a formal record of the financial activities of an entity; it reflects the financial effects of business transactions and events on an entity. It is prepared by following certain logical and consistent accounting principles; and it is usually audited to ensure accuracy for tax, financing, or investing purposes.” He said.
Ariyibi further explained the relevance of financial statement to the various users, “For Management, it is used for planning, controlling and decision-making process, to evaluate the organisational performance and position, so that the necessary measures are taken for improvement. For shareholders and investors, financial statement can be used to analyse the viability and profitability of their investments and to assess the ability of the business/organisation to pay dividends and determine any future course of action.”
“While employees and trade union can used it to evaluate the financial health of the business with a view to determining their job security, the possibility of future remuneration, retirement benefits and employment opportunities.” He added.