THE CAPITAL MARKET AND IT’S IMPACT ON THE NIGERIA ECONOMY WITH PARTICULAR EMPHASIS ON THE STOCK EXCHANGE. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
The purpose of this study is aimed towards the impact of stock exchange in the Nigeria economy. In other words, the development of the economy cannot be ensured if the market it elf is not well developed. In the same vain to spotlight factors that contribute to the gradual growth of stock exchange are the government policy and operation of the central Bank before the exchange was established. They facilitate the issuing of securities.
I have made an attempt through questionnaire and interviews to know if the stock exchange is not intensive because most individual are ignorant and also the underdevelopment of stock exchange is not intensive because most individual are ignorant and also the under-development of stock exchange.
After careful analysis of answers from the respondents. I found out that it was noticed that despite the shortcomings found existing in the stock exchange, its creation was necessary and it has added value to the economy of the country and also under development was due to pricing policy by the government, communication system, cast of registering, level of literacy in the country and information made available to the public based on the constraint, some recommendation’s were however made by the research such as arranging more seminars and symposium to enlighten people. The computer system which is being installed should be done in full measure and not half measure.
From this the stock exchange can help in developing the economy only if the stock exchange is well handled by the economy.
1.1 BCKGROUND OF THE STUDY
The stock market commonly known as the stock exchange is encompassed in the capital market.
It can be describes as a place where savers and investors are brought together to trade on securities and sources of finance. It has basically, the same functions as any other financially institution which comprises the financial system.
The stock exchange plays an important role in the development of our economy. A developed financial system they say is a developed economy. The primary aim of every nation I believe is to improve the standard of living existing in the country. How does this need relate to the stock exchange and its activities? Has it been successful in this particular area? It should be borne in mind through that the economy of any country is a very complex issue especially in the case of Nigeria. Since its establishment which was necessary due to same pressing factors, the economy has undergone a lot of drastic changes.