The capital market is not really a market in the traditional sense but a process or a network of the 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-banks financial institutions. The financial products sourced from the capital market includes ordinary share capital which covers new issues/rights issues, preference capital, bonds and debentures, and other long term securities.
The performance of the Nigeria 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 on a barometer for measuring changes in general economic activities using a stock market index.
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 of its inter-relationship with other 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 active capital market in developing countries includes:-
- 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 find other than taxation for 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.
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS
AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)
CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »
A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »
AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)
HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »
APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA
2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »
ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA
ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »
ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)
THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »
What are looking for today?
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
31,915 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
20,555 people found this useful
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
16,997 people found this useful
PARTY SYSTEM AND NIGERIA POLITICAL DEVELOPMENT
16,828 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
16,593 people found this useful
FACTORS AFFECTING LANGUAGE CHOICE IN A MULTILINGUAL SOCIETY
16,581 people found this useful