For many students, the idea of investing in stocks and shares often sounds intimidating. Well… at first.
Both terms sound like something reserved for finance experts like people in suits, or those with large amounts of money. But in reality, understanding stocks is less about complexity and more about perspective.
In the simplest of terms, investing in stocks means owning a small part of a company.
What are Stocks and Shares?
Stocks (or shares) simply represent ownership in a company.
When you buy a share of a company, you are essentially buying a small piece of that business. This means:
- If the company grows and becomes more valuable, your share increases in value.
- If the company performs poorly, the value of your share may decrease.
So, instead of just being a consumer of brands, you become an active participant in their growth.
One common question is, how do people even make money from stocks? Well, there are two primary ways investors earn from stocks:
1. Capital Appreciation (Price Growth)
If you buy a share at ₦1,000 and its value rises to ₦1,500, you can sell it and make a profit.
2. Dividends
Some companies share a portion of their profits with shareholders. This means you can earn money simply by holding the stock.
Even if you’re not actively investing yet, understanding stocks gives you an advantage. It helps you:
- Develop a long-term mindset about money.
- Understand how wealth is built beyond saving alone.
- Recognise opportunities to grow money in the future.
- Become financially aware in a world driven by businesses and markets.
The earlier you understand it, the less intimidating it becomes.
One major thing to note is that stocks are not guaranteed.
Prices can go up or down based on the company’s performance, economic conditions and sometimes, market trends.
This is why stocks are generally considered higher risk compared to structured savings or government-backed investments. However, risk does not really mean danger, it simply means uncertainty. And with the right knowledge, that uncertainty can be managed.
Here’s an example:
Imagine two students. One keeps all their money in a regular account while the other saves consistently and gradually learns to invest in stable companies over time. Technically, the first student preserves money while the second student gives their money a chance to grow beyond what saving alone can do.
This is where platforms like Ladda are useful.
Ladda helps you build discipline first, which is essential before exploring higher-risk investments like stocks. I like to think of it as learning to walk before you run.
You don’t need to start with large amounts, and no, you also don’t need to know everything at once. But understanding stocks early puts you in a different position; one where you’re not just earning money, but learning how to make money work for YOU.
So, if you’re trying to figure out money as a student, you don’t have to do it alone. One thing that helped me was being around people who were also learning, failing, and figuring it out in real time.
That’s exactly what the Ladda student community is for; it’s a space where students share real experiences, ask questions, and learn how to save and grow their money without pressure.
If you’re serious about getting better with money, you should join in!
Here’s the Link: https://chat.whatsapp.com/KX1sk4M6m0c8yDsbHb4hwa
NAME: Rukevwe (Rukky) Agoreyo
BIO: Rukevwe is a writer and brand storyteller passionate about fintech and edtech, using stories to make complex ideas feel simple, relatable, and human. She enjoys turning everyday experiences into meaningful narratives and helping brands connect with people in ways that actually stick. Through her work, she explores growth, creativity, and the role of storytelling in shaping how we learn, earn, and live.
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