TABLE OF CONTENTS
Title Page
Dedication
Acknowledgment
Abstract
Table of Content
CHAPTER ONE
- Introduction
1.1 Background of the Study
1.2 Statements of the Problem
1.3 Objective/Purpose of the Study
1.4 Research Question
1.5 Significance of the Study
1.6 Test of Hypothesis
1.7 Scope and Limitation of the Study
1.8 Organisation of the Study
1.9 Definition of Terms
References
CHAPTER TWO
- Literature Review
2.1 Background To The Establishment Of The Stock Exchange Market (SEM)
- Structure of The Stock Exchange Market (SEM)
- The Objectives Function/Role Of The Stock Exchange Market
2.4 System of Operation in the Exchange
2.5 Listing Requirement in the Exchange
2.6 Problems Of The Stock Exchange Market
2.7 Internationalizing The Nigeria Stock Exchange
CHAPTER THREE
- Research Design and Methodology
3.1 Sources of Data
3.2 Population of the Study
3.3 Sample Size
3.4 Method of Data Analysis
CHAPTER FOUR
- Data Presentation and Analysis
4.1 Test of Hypothesis
CHAPTER FIVE
- Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
Questionnaire
ABSTRACT
This research work focuses on the role of Nigeria stock exchange in Economic growth and development. It specifically investigated the effect and the causal relationship between the two variables in Nigeria. The researcher conducted some literature related works likes reference, research, design, this work was designed to find out the extent in which Nigeria stock exchange helped in the growth and development of individual sector. The method used in the collection of data are primary and secondary method, in primary data collection method of pernasl data, literature review, questionnaire and also secondary data collection was used as an additional sources of data. The use of literature related test like: book, journals, newspaper and other forms where adopted as well. However, the research work is determined to evaluate the effect of Nigerian stock exchange on the general findings over business growth especially in recent years by using different types of foreign investors method of bringing in more foreign currency into the economy. The following recommendation in to alleviate some anticipated issue and weakness on Nigerian stock exchange which adequate publicity should be given to Nigerian stock exchange and the public educated on the activities of the Nigerian stock exchange to induce more participation.
CHAPTER ONE
- INTRODUCTION
1.1 Background of the Study
The 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. It provides the facilities that make it possible for buyers and sellers to meet. Perhaps, An example of a stock exchange market is the Lagos stock exchange established in 1961 through the Act of parliament as a result of the need for a market for the selling and buying of securities. The stock exchange market is meant to be a strong and very important source of capital in the capital market for the development of the West African sub-region.
Over the years, the stock exchange market has been on the downward swing and is characterized by low growth. The market has defied all necessary changes made to strengthen of the SEM is characterized by unstable market growth, low level of income saving, corruption, inflation of market prices and lack of interest. These and many more have made the SEM to lose focus, thereby causing a downward movement of the economy.
It is this necessary to direct a searchlight on the activities of the SEM as a body where in lies the hope of our economical development so as to assess its achievement, problems and prospects in helping to actualize the noble objectives of acts that set it up.
- STATEMENT OF THE PROBLEM
The ignorance of the stock exchange has brought about how participation of firm an individual engagement join the stock exchange and this has also limited the availability of stock and shares that could be traded on the stock market.
The Nigerian stock exchange has been established and the substantial financial resources available in the country, coupled with the existing institutions one can claim that the entre spectrum of the capital market has not been sufficiently active, especially when compared with the capital units of similar or laser aged units in other developing countries.
The factors responsible for these are identified to include.
- Insufficient enlightment and publication of shares in primary and secondary market.
- Instability of Nigeria economy affect the market of Nigeria stock exchange.
- No stable price fixing of share affect economic development in Nigeria.
- High cost of transaction in par value, premium and discount hinder foreign investors into the economy.
- Lack of transparency of directors, stock brokers, and shareholders hinder the progress of Nigeria stock exchange.
- Poor economic performance of shareholders, stock brokers and financiers
- Corruption in Nigeria stock exchange market destabilizes gross domestic product.
- There is price fixing and over valuation of shares.
This study intends to evaluate the performance of the effect of Nigerian stock exchange in terms of its trading activities and determines the extent to which its contributes to the capital formation process of the economy if at all there is causalities between them.
- PURPOSE OF THE STUDY
In general the study hopes to take a close look at the effect of Nigerian stock exchange in industrial development in other to:
- To determine whether enlightenment and publication in the primary and secondary market affect Nigeria stock exchange.
- To Find out whether instability in Nigeria economy affect the market of stock exchange.
- Find out the extent in which Nigerian stock exchange has helped in the growth and development in industrial sector.
- Find out whether Nigerian stock exchange has contributed to the industrial development.
- Find out if Nigerian stock exchange are facing the problem of delay in delivery and settlement in stock transaction.
- Find out whether Nigerian stock exchange are having a financial problem in transaction.
- To evaluate the performance of the Nigeria stock exchange in relation to the economic growth and development.
- To examine the operations of the Nigerian stock exchange market. 9. To examine the rate at which new stocks are issued on the capital market.
- To make recommendations as to how the operations of the market could be improve to boost economic growth and development of Nigeria.
1.4 RESEARCH QUESTION
This research shall be guided by the following research questions:
- Does insufficient information, enlightenment and publication in the primary and secondary market affect Nigeria stock exchange?
- What political instability affect economic growth in the Nigeria stock exchange market?
- What extent in which Nigerian stock exchange has helped in the growth and development in industrial sector?
- What stock exchange rate has contributed to the industrial development of Nigeria sector?
- How does the Nigeria stock exchange market impact on the economic growth and development process in Nigeria?
- What is the trend of trading activities on the Nigeria Stock Exchange?
- What is rate at which new stocks are issued on the Nigerian stock exchange market?
- How could the Nigeria stock exchange through its crucial role stimulate economic growth in Nigeria?
1.5 SIGNIFICANCE OF THE STUDY
Although students research abounds in this area this work will serve as a addition to existing literature in this topic.
It would also educate must uninformed people about the roles and responsibilities of the SEM.
This project would also provide insights to students of baking and finance who are not well informed about the prevailing situations in the Nigerian stock exchange market.
Above all, the essence of the study is to point out a positive direction for a vibrant and professionally efficient SEM. The resultant efficiency will be reflected in high ethical standard of workers and translate to a very high image for the NSE with obvious and positive economic implications.
- TEST OF HYPOTHESIS
The researcher formulated the following the hypothesis from the objective of the study.
Ho: Lack of enlightenment and publication in the primary and secondary market does not affect Nigeria stock exchange.
H1: Lack of enlightenment and publication in the primary and secondary market affect Nigeria stock exchange.
Ho: Political Instability in Nigeria economy does not affect the market of stock exchange.
H1: Political Instability in Nigeria economy affect the market of stock exchange.
Ho: Nigerian stock exchange has not helped in the growth and development in industrial sector.
H1: Nigerian stock exchange has helped in the growth and development in industrial sector.
Ho: Nigerian stock exchange are not facing problem of delay in delivery and settlement in stock transaction.
H1: Nigerian stock exchange are facing problem of delay in delivery and settlement in stock transaction.
- SCOPE AND LIMITATION OF THE STUDY
The economy is a large component with lot of diverse and sometimes complex parts; this research work only looked at a particular part of the economy (the financial sector). This work did not cover all the facets that make up the financial sector, but focus only on the capital market and its activities as it impacts on the Nigerian economic growth. The empirical investigation of the impact of the capital market on the economic growth in Nigeria was restricted to the period between 1981 and 2011 due to the non-availability of some important data.
1.8 ORGANIZATION OF THE STUDY
The study is divided into five (5) chapters and organized as follows:
Chapter one form the introduction part, this is where the main theme of the research is given. It comprises of the statement of the problem, objectives of the study, research questions and hypotheses, significance of the study, scope and delimitation of the study and organization of the study.
Chapter two is the literature review of the impact of capital market on the economic growth of Nigeria.
Chapter three forms the research methodology which includes sources of data, method of data analysis and model specification.
Chapter four is the data analysis while chapter five includes the summary, conclusion and recommendations.
- Definition of Terms
REFERENCES
Anyanwu J. C. (2006). “Monetary Economics: Theory, Policy and Institutions”. Hybrid publishers limited.
Alile H. I. and Richard A. Anao (2004). “The Nigerian Stock Exchange in Operation”. Lagos. Academy Press.
Demirguc-Kunt, Asli and Ross Levine (2006). “Stock Market, Corporate Finance and Economic Growth: An Overview” The World Bank Review 10(2):223-239.
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