Thesis Abstract

The stock exchange market plays a crucial role in the economy by providing a platform for companies to raise capital for business expansion and investment opportunities for the public. This research explores the various ways in which the stock market contributes to economic growth and development. Firstly, the stock exchange market facilitates capital formation by allowing companies to issue shares to the public in exchange for funds. This enables companies to raise capital without incurring debt, which can be beneficial for long-term growth and sustainability. Additionally, the stock market provides liquidity to investors, allowing them to buy and sell securities easily. This liquidity not only benefits individual investors but also contributes to overall market stability. Furthermore, the stock exchange market serves as an indicator of the overall economic health of a country. Fluctuations in stock prices can reflect changes in investor sentiment and market expectations, providing valuable insights into economic trends. Additionally, the stock market can influence consumer confidence and spending behavior, which can have a significant impact on economic growth. Moreover, the stock exchange market plays a crucial role in corporate governance by promoting transparency and accountability. Companies that are listed on the stock exchange are required to adhere to strict disclosure and reporting standards, providing investors with valuable information to make informed decisions. This transparency can help to reduce information asymmetry between companies and investors, ultimately fostering trust in the financial system. In addition to capital formation and market transparency, the stock exchange market also promotes innovation and entrepreneurship. By providing access to capital, the stock market enables entrepreneurs and small businesses to fund new ventures and expand their operations. This can lead to job creation, increased productivity, and overall economic growth. Overall, the stock exchange market is an essential component of the economy, facilitating capital formation, providing liquidity, serving as an economic indicator, promoting corporate governance, and fostering innovation. Understanding the role of the stock market in the economy is crucial for policymakers, investors, and businesses alike to make informed decisions and support sustainable economic growth.

Thesis Overview

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.

 1.2 STATEMENT OF THE PROBLEM

When the Nigerian stock Exchange market was established in 1961 Nigerians from all works of life thought it a step in the right direction. It was hoped that with the establishment of the SEM, our economy could by better for it.

It is against this back-drop that the researcher has set out in a bid to find lasting solutions to these problems.

1.3 OBJECTIVE OF THE STUDY

The major objective of this study is to make a reliable contribution on how the SEM would must up to its responsibilities as the backbone of the Nigerian economy. However, this study will eritically examine all those bottlenecks that make it difficult for the SEM to leave up to its billings.

It will also discuss measures to encourage saving and issue of securities of government and other organization.

The study will also find out the easiest and shortest means of issuing and transferring shares for greater efficiency.

Finally, this work will make suggestions and recommendations based on the research finding.

1.4 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