THE ROLE OF STOCK EXCHANGE AND ITS IMPACT IN GLOBAL ECONOMY

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ABSTRACT

This project work takes a look at the role of Nigerian stock exchange has played in a developing economy like Nigerians. The Nigerians stock exchange performance indicators has been examine and analyzed critically to show the extent the stock market has been able to mobilize capital in the economy. This work also identified the regulatory and supervisory role of the Nigerian Securities and Exchange Commission (NSEC) and how it has taken apart or participated in the financial market especially in determining price of stocks and securities. The mutual relationship between the value of transaction (VOT) and the gross Domestic product (GDP) are shown using the statistical and economical tools. Also the  level of significant between  the list of quoted companies are tested.

The researcher identified the problem inherent in the Nigerian stock exchange. That is, problems impending the stock from playing its functional role effectively. Based on the finding of this research work, the researcher made policy recommendation on how the  Nigerian stock exchange can improve in its functional responsibilities so as to play a prominent role in developing the Nigerian economy.

TABLE OF CONTENTS

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

CHAPTER ONE

  1. INTRODUCTION.
  2. Historical background of the study
  3. Statement of problem.
  4. Objectives of the study
  5. Research Question
  6. Scope of the study.
  7. Significance of the study.
  8. Definitions of terms.
  9. Stock exchange as a Hub to the economic development of a Nation.
  10. Impact on stock exchange development.
  11. The need for a stock exchange in the economy.

CHAPTER TWO

  • REVIEW OF THE RELATEDLITRATURE
  • The development of Nigerian Capital market.
  • Operation in the market.
  • The concept of a stock exchange
  • The Nigerian stock exchange and capital formation.
  • Nigerian stock exchange crisis
  • Investors protection.

CHAPTER THREE

  • RESEARCH METHODOLOGY
  • Research design.
  • Sources of data
  • Primary data
  • Secondary data
  • Method of data collection.
  • Determination of population
  • Sample procedures
  • Methods of administrating Questionnaires
  • Decision rule.

 CHAPTER FOUR

  • FINDINGS

CHAPTER FIVE

  • Conclusion
    • Recommendations.
    • Bibliography.

CHAPTER ONE

1.O INTRODUCTION

A STOCK exchange can be described as a place where security bonds stocks, shares of various types are traded, openly and where one can purchase or sell any of such securities with relatives case.

 Securities are documentary evidence of ownerships or entitlement to claim upon the assets of issuing organization which may be a business firm government or quasi government institution. There are documentary evidence usually have no fixed or absolute value which are subjectively determined by those buying and selling them.

Stock exchange is also a place where enormous capital which is required to operate the huge industrial and commercial cooperation of today can be raise in such large amount and of some competitive term, (cost, length of negotiation condition etc) that no other institution in a capitalist system can possibly match stock exchange is a vital economic institution, the height of development the world has attained makes  the stock exchange market services indispensable the SEM is seen as a vehicle of  fund mobilization and the development of local capital in Nigeria.

The stock exchange market is meant to be strong and very important source of capital in the capital market for the development of West African sub region. Over he years, the stock exchange market has been on the down ward  swing and is characterized by low growth the market has defined all necessary change made to strengthen of stock exchange market is characterized by usable market growth, low level of income saving corruptions, inflation of market prices and lack of interest there  and may more have made the stock exchange market to loss focus thereby causing a downward movement of the economy.

  • HISTORICAL BACKGROUND OF  THE STUDY
THE ROLE OF STOCK EXCHANGE AND ITS IMPACT IN GLOBAL ECONOMY