ABSTRACT
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.
TABLE OF CONTENT
CHAPTER ONE
Introduction
1.1 Background
of the study
1.2 Statement
of the problem
1.3 Purpose/Objectives
of the study
1.4 Research
Questions
1.5 Research
Hypothesis
1.6 Significance
of the study
1.7 Scope
Limitation and Delimitations
1.8 Definition
of terms
CHAPTER TWO
Review of related
literature
2.1 A
brief of overview on the capital
2.2 The
stock Exchange Definition
2.3 Establishment
and constitution
2.4 Development
and Growth
2.5 Functions
and Importance of the Exchange
2.6 Securities
and exchange commission audits role/functions I the exchange
2.7 The
second-tier and first –tier security market and the exchange
2.8 Structure
Adjustment programme
2.9 The
stock exchange in operation
2.9a
In the primary market
2.9b
In the secondary market
2.10
critical evaluation of the stock exchange
2.11
problems Associated with the exchange
CHAPTER THREE
Research Design and
methodologies
3.1 Research
Design
3.2 Area
of study
3.3 Population
3.4 Sample
and sampling Technologies
3.5 Instruments
of data collection
3.6 Methods
of Data presentation
3.7 Methods
of Data Analysis
CHAPTER FOUR
Data presentation and
Analysis
4.1 Questionnaire
4.2 Interview
CHAPTER FIVE
Findings, Recommendation
and conclusion.
Conclusion and its
relevance
Recommendation
Final conclusion
Bibliography
CHAPTER ONE
1.0 INTRODUCTION
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.
As will be discussed
later, the impact of the stock exchange in the business world of Nigeria has in
some way benefited the country. Whether it has done so successfully or not will
be determines not just over its short history but also in the future years to
come.
Although other means of
raising fund exists, the stock exchange no doubt adds more sophistication and
thus efficiency which is necessary for every developing country in this case
Nigeria.
The project has been
embarked on mainly to give a general idea on the life of the exchange and its
operating. It also hopes to point out certain deficiencies associated with it
and the viewpoint of different individuals, firms and companies on it. In doing
so, this project has been divided into different chapters, each discussing a
vital point or aspect.
This first chapter
centers mainly on the purpose of this study, it’s objectives, significance and
limitations associated with it. It will help to highlight certain problems
relating to the exchange and it use.
The next chapter is just
a simple discussion the stock exchange. It is the literature review of this
project. It tells us what different author’s have said in relation to his topic
and also their point of view on this topic.
Chapter 3 is a brief
arration on how the research on this project has been carried out the
difficulties encountered and what type of facts and sampling I have based this
project on. The last two chapters on the other hand is detailed analyzed here
are data got from the general public form this I was able to draw some
conclusions and deduce certain facts which have all been summarized in the last
chapter.
Various means have been
embarked on to make this project possible. It has been worthwhile through
because as a friend put it, no person can hope too carry out an effective
influential and flourishing business if he is not well versed on the financial
market.
1.2
STATEMENT OF THE PROBLEMS
This importance of a
developed economy, can never be over emphasized. An efficient stock market goes
a long way in carrying out this functions. This fact is not withstanding, we
fined out that a lot of people in this country are not even aware of the stock
market, it’s functions and how it can facilitate the development of the
economy. In an under developed economy like ours, the need for this market is
paramount of the economy is expected to be improved upon .
Another problem
associated with the stock exchange is that of development. Trading on the
exchange has not been as extensive as was expect. The development of the
economy cannot be ensured of the market itself is not only developed. In this
problem if it is not checked well, not only defeat the goals of the market as
an outlet for finance. This is a major set –back in the development of the
economy. It is obvious that the establishment of the stock exchange is at stake
and if nothing is done now, it could gradually be eroded.
1.3
PURPOSE/OBJECTIVE OF THE STUDY
The objective of this
project is to present a through study of the stock exchange and to throw more
light on its importance in the business world.
The main objective thus
are:
To bring closer to have
the reality of the stock market by:
i.
showing it’s development
ii.
It’s functions and importance;
iii.
It’s impact in he business world and the development of the economy.
· To
light the deficiencies of the market.
· To
find possible solutions to these deficiencies.
· These
objectives I believe should serve to inform fellow users of the market to the
deficiencies that exist there and possible solutions so as to improve on the
deficiencies.
1.4 RESEARCH
QUESTION
i. Is
stock exchange market closer to individuals?
ii. How
closer is the reality of the stock market in it’s development to Nigerians?
iii. Has
the market imparted in the business world and development of the economy.
iv. What
do you think is the deficiencies of the market?
1.5 RESEARCH
HYPOTHESIS
(a) Ho:
Use of stock exchange is not extensive due to ignorance especially on the part
of individuals.
H1: Use of stock exchange is extensive due to
ignorance especially on the part of individuals.
(b) Ho:
Stock exchange market has not imparted in the business world and development of
the economy.
H1: Stock exchange market has imparted in the
business world and development of the economy
HYPOTHEIS TWO
Ho: Stock exchange
market has not imparted in the business world and development of the economy
and development of the economy.
H1: Stock exchange
market has imparted in the business world and development of the economy.
Responses |
0 |
E |
(o-e) |
(o-e)2 |
(o-e)2 o-e |
Yes |
45 |
26 |
19 |
361 |
13.88 |
NO |
7 |
26 |
-19 |
361 |
13.88 |
|
52 |
|
|
|
27.76 |
At degree of freedom
(Df) = (c-1) (R-1)
= (2-1) (2-1)
= 1x1 = 1
1 at 51 level of
significance = 3-84
Decision
Since calculated X2 value
of 27.76 is greater than the table value X2 of 3.84. we
therefore reject the null hypothesis (Ho) and accept alternative hypothesis
(H1) meaning that stock exchange market has impacted in the business world and
development of the economy.
1.6 SIGNIFICANCE
OF THE STUDY
This study is important
in the sense that it has to do with the economy of this country.
An under –developed
stock market we said means an under-developed economy, thus how standard
loving. Nigeria’s being conservative people, they need to be encouraged to
embark being relatively when compared to the money market, which is also an
outlet foe rising funds but short-term ones, confidence in it has to be
gradually developed if it is hoped for the market to be a success and for it to
carry out it’s functions well. As this study goes a long way to throw
more light on this market and its’ function, it is hoped that an awareness will
be instilled in its’ readers and the suggestion put towards considered.
1.7 DEFINITION
OF TERMS
For complete
understanding of this project, these terms have been defined;
Financial market
-
Market for raising funds, where saving and investment are brought together.
Economic
Development-
To increase or improve on the welfare of a nation through is productive sector.
Securities
-
Financial instruments/assets trade in the market to raise fund.
Capital-
Funds required to finance production of either goods or services.
Investment-
Utilization of capital resources for the maximum reward.
ABBREVIATION
SEC
- Securities and
Exchange Commission
NEO
- Nigeria
Enterprises promotion Acts of 1972 and 1977
NSE
- Nigeria stock
Exchange
SSM
- Second –tier
securities market.
FSM -
First –tier securities market.
Department | Banking and Finance |
Project ID Code | BFN0210 |
Chapters | 5 Chapters |
No of Pages | 86 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |