The market embraces the stock market, an
active stock market may be relied upon on a barometer for measuring changes in
general economic activities using a stock market index.
The stock market is the market for trading in
stock and shares, bonds, debentures, and other long-term securities. It is also generally referred to as the
secondary market where seasoned securities are traded in very much linked to
the stock market is a primary market which is responsible for the placement of
new issues contributes directly towards increasing loanable fund and allotting
these between production economic club.
The stock market provides the forum for
capital market activities. Quoted securities
have the advantages of relatively, high liquidity as they can be bought or sold
through the exchange at relatively short notice. The role of the stock market is a direct
function of the extent of use and its interrelationship with another sector of the
Table of content
Statement of the problem
Purpose of study
Significance of the study
Scope of the study
Limitation of the study
Definition of terms
Review of related literature
Definition of economic depression
Nigerian economic depression: causes and effects
Main features of the Nigeria capital market
Nigerian stock exchange
Sources of data
Method of data collection
Method of hypothesis testing
Data presentation and analysis
Test of hypothesis
Summary of findings, conclusion, and recommendation
The capital market is not a market in the
traditional sense but a process or a network of institutions that perform
functions that are described as capital market activities. It is a process through which the long-term
finds are procured under the intermediation of banks and non-bank financial
institutions. The financial products
sourced from the capital market include ordinary share capital which covers new
issues/rights issues, preference capital, bonds and debentures, and other
The performance of the Nigerian capital
market has over the years been more of a fluctuating experience, which though
is not uncommon with events in the operation of the capital market
worldwide. The market is also generally
referred to as the secondary market where seasoned securities are traded, very
much linked to the secondary market is the primary market which is responsible
for the placement of new issues contributed directly towards increasing
loanable finds and allocating these between productive economic units. The stock market is relied upon as a
barometer for measuring changes in general economic activities using a stock
Quoted securities have the advantage of
relatively, high liquidity as they can be bought and sold through the exchange
at relatively short notice. The stock
market is usually accessible to all categories of livestock small or big,
government, institutions, and individuals.
The role of the stock market is a direct function of the extent of usage
and its inter-relationship with another sector of the economy.
The opening of the Lagos stock exchange in
1960 marked the birth of the Nigeria capital market. The reasons for promoting an active capital
market in developing countries include:-
– The mobilization of savings from numerous
economic units for economic growth and development.
– The encouragement of a more efficient
allocation of new investment through the pricing mechanism.
– The provision of an alternative source of
funding other than taxation for the government.
– The breading of ownership base or assets
and the creation of a healthy private sector.
– The provision of sufficient liquidity for
any investor, group of investors.