CHAPTER ONE
1.0 INTRODUCTION:
Investment decision involves interaction among the savers and users of funds. Such interaction takes place in the capital market. Capital market interactions facilitate the exchange of long from finds between surplus units and deficit unit. This interaction endless the saving and using units to make up the short fall by insuring financial done on themselves. Similarly it creates an opportunity for the surplus unit to acquire income fielding financial assets. The process of interaction therefore result in a simultaneous creates of financial liabilities. It gives rise to constant change on claims and counter claims to financial assets. Change which represent financial flows. Optional financial flows are a necessity involvement especially in the realization of the privatization programme and it depends particular on the capital market.
However, the two major decision of a corporate body, the government etc. are the financial and investment decisions recently, the focus has shied to investment mainly. This result to the need for societies the government, through its privatization policy is finding a way to make it major parastatals investment oriented. This come as a result of the identifies inefficiency sectors where means that the management of these public enterprises will be either partially or completely shied to the private enterprises who will make use of the long-term countries provided by the capital market. As ‘described’ by Ojo and Adeworim (1982) capital market is the “stock market” in the word, of ALIKE and ANAS (1986) “A stock market is many things at the same time firstly, it’s a place where societies, (bonds, stocks and shares) of various types are traded opening and where one can purchase or sell and some securities relatively easily.
OVERVIEW THE NIGERIAN CAPITAL MARKET
For about fifty years ago, Nigeria remains as a column of the British government with all her financial policies and implementation being contributed from overseas, this trend is counted against the federal government to mobilize the country’s of resources for a meaningful development. During the period of our political and economic allegiances to Briton, Nigeria had no outstanding capital market. What is known lodging as the Nigerian stock exchange started from the Lagos stock exchange which was incorporated as a limited liability company in direction 21 of the company ordnance of 1980, as non profit making organization limited by grantee and informed to promoted commerce in Nigeria and it began operations on June 19 by (Nwankwo 1987 P.132) its establishment follow the report of the committee appointed to advice on ways and means of fostering share market in Nigeria. This committee was set up in 1958. In July 1962, the capital market in Nigeria was essential are adore committee and handled about.
In march 1973, an act was promulgates creating a capital issues commission which was to super code the adore capital issue committee determining the price at which the shares of debentures of a campaign are to be sold, the terming and the amount of sale and in the case of a company whose securities have been quotes on any recognized stock exchange. The price turning amount of supplementary offer for sale. The Nigerian stock exchange come into existence following the recommendation of the committee on the Nigerian financial system 1st April 1978, the capital issue commission was repkee by the securities and exchange commission (SEC) as the highest institution of the Nigerian capital market. In 1985, the second tier securities market was created by the Nigerian stock exchange as an alternative to the main market. To later primarily for small and medium sized companies wanting to release money through the capital. Adekanye (1986: 57). It was through necessary to establish this body will less stringent conditions since small and medium seized companies are usually not able to fulfill the requirements for listing on the stock exchange.
STATEMENT OF THE PROBLEM
In Nigeria, the public enterprises have not tried up to expectations especially in the promotion advancement and growth of the Nation economy. This loophole is evidenced in lave of financial control, general administration and all ill acceptability when compared to the private enterprise in this control is plaques by protocol and budgeting constraint. In securing of system leading to job dissatisfaction. Lack of commitment and underpayment when compared with the private enterprise. Secondly, its this ugly trend in the impression of people. That public enterprises and properties are armed by no man. This made them to often record considerable loss. As an evidence of the above assertions, the former Chief of general staff (commodore Eritu Ukwe) federal government total investment to about N11.3.6 billion yield only N934 Billion. This yield another arrange of about N200% per year on an equity. Investment of 11Bilion thus making a gross return of less than 2% amount, hence we need that evaluation and Appraised of public enterprises.
