ABSTRACT
The Nigerian capital market come into prominence when the
Nigerian enterprise decree, which is also known as the indigenous decree was
promulgated in 1972, and amended in 1977. The public became aware of the
importance of securities as avenue for investment, especially through the
introduction of privatization and the N25 billion capital base for banks.
Market in the developing economy. Were stock exchange established in 1961 as
Lagos stock exchange in 1977, was used as a case study. It was found out that
ital market despite some problems or shortcoming have helped a developing
economy like Nigeria with the involvement of Nigerian stock exchange market,
which have been machine in for mobilizing private and public savings and making
them available for productive investment through share and stocks. Also it has
provided a meeting place for dealing members to buy and sell existing stocks
and shares which is an avenue for raising new capital for investment and
development of the economy.
The statistics were gotten through use of primary data and
secondary data where inferences were drawn to arrive at a given conclusion.
TABLE OF CONTENTS
TITLE PAGE——————————————— i
APPROVAL PAGE—————————————– ii
DEDICATION——————————————— iii
ACKNOWLEDGEMENT———————————– iv
ABSTRACTS———————————————- v
TABLE OF CONTENTS———————————— vi
CHAPTER ONE
1.0
INTRODUCTION———————————— 1
1.1 OVERVIEW OF THE
STUDY———————— 1
1.2 STATEMENT OF
PROBLEM————————- 5
1.3 OBJECTIVES OF THE
STUDY———————- 7
1.4 RESEARCH
QUESTIONS————————— 7
1.5 SCOPE OF THE
STUDY—————————- 8
1.6 SIGNIFICANCE OF
RESEARCH STUDY———— 9
1.7 LIMITATIONS OF
THE STUDY——————— 9
1.8 DEFINITION OF
TERMS—————————- 10
CHAPTER TWO
2.0 LITERATURE
REVIEW—————————— 12
2.1 HISTORICAL
BACKGROUND OF NIGERIA CAPITAL MARKET———–12
2.2 CHALLENGES OF
CAPITAL MARKET—————- 18
2.3 OPERATIONS OF THE
CAPITAL MARKET———– 20
2.4 CONTROL OF THE
CHPITAL MARKET————— 24
2.5 THE IMPACT OF
NIGERIA STOCK EXCHANGE
IN THE
ECONOMY———————————- 28
2.6 THE ROLE OF THE
CAPITAL MARKET IN A
DEVELOPING ECONOMY—————————- 30
COMPARATIVE ANALYSIS OF MONEY AND CAPITAL MARKET———-32
CHAPTER THREE
3.0 SUMMARY,
CONCLUSIONS AND RECOMMENDATION- 38
3.1 SUMMARY OF
FINDING—————————– 38
3.2
CONCLUSIONS————————————– 40
3.3
RECOMMENDATIONS——————————-
41
BIBLIOGRAPHY————————————– 44
APPENDIX——————————————–
46
CHAPTER ONE
1.0 INTRODUCTION
1.1 OVERVIEW OF THE
STUDY.
The capital market is the market for dealings (that is
lending and borrowing) in longer-term loanable fund. The market is the source
from which industry obtains its capital for establishment, expansion and
modernization and from which the government borrows on long-term basis for
development purpose. It offers access to variety of financial instruments that
enables economic agents to pool, price and exchange risk. Through assets with
affricative yields, liquidity and risk characteristics, it encourages savings
in financial form. This is very important for government and other institutions
in need of long-term funds and for suppliers of long-term funds who, because of
the nature of their liabilities, undertake to maintain part of their assets in
the relatively liquid form (Ekezie 19997).
According to
Kanu N.O.N (2004) capital market refers to that market for the mobilization of
medium and long term founds from the surplus units for allocation to the
deficit units of the economy. The market provides opportunities for the
issuance and resale of government securities, corporate bonds, stock, shares
and, mortgage loan.
A broad
definition of the term capital market according to Alile (1986) includes the
entire financial system, commercial banks and other financial institutions
providing short, medium and long term loans to finance both consumption and
investment while an intermediate definition would include only those
institutions which are concerned with providing long-term credits however, the
narrow definition of capital market rulers to it as involving the problem and
prospects of equity investment. The relates to the issue and market of shames,
bonds, debentures, and other long-term securities using the service of brokers,
dealers and underwriter.