CAPITAL MARKETS, ITS NATURE AND SIGNIFICANCE
This work is designed to assess the Nature of capital market, its significance, mode of operation, its contributory functions in general and narrowly in Nigeria contact. The problems associated with the development of capital market in developing countries using Nigeria as an example.
TABLE OF CONTENTS
TITLE PAGE II
APPROVAL PAGE III
1.1 INTRODUCTION 1
1.2 STATEMENT OF PROBLEM 2
1.3 OBJECTIVES OF STUDY 3
1.4 SIGNIFICANCE OF STUDY 4
1.5 SIGNIFICANCE OF STUDY 4
1.6 LIMITATIONS OF STUDY 5
LITERATURE REVIEW 6
2.1 ORIGIN OF NIGERIA CAPITAL MARKET 6
2.2 FUNCTIONS OF CAPITAL MARKET 10
2.3 PROCEDURE FOR PURCHASE AND SALES OF STOCK DEALING PRICE FIXTURE 12
2.4 CALL OVER PROCEDURE 13
RESEARCH DESIGN OF METHODOLOGY
3.1 SOURCES OF DATA 18
3.2 LOCATION OF DATA 18
3.3 METHOD OF DATA COLLECTION 19
5.1 CONCLUSIONS 22
5.2 RECOMMENDATIONS 22
A capital market is a complex institution comprising of regulators, facilitators, issuers and investors. It is the mechanism through which long term funds for households, firms and government are polled and made available to various sectors of the economy, including transfer of instrument already outstanding. The capital market on the other hand, deals with long term financial claims and obligations. It provides the necessary facilities for users and supplier of capital (Longterm) funds to interact for their mutual benefit. Hence most financial activities which are necessary in the investment process are consummated in that market. Capital market instruments have long-term maturity. Some like equity stock have indefinite maturity dates. In general, all financial transactions which involve maturity periods of over three years could be presumed to belong to the capital market it also has no confined place for its operation however, parts of the market are concentrated in certain well-known centers. Participants in the market are businessmen, government at all levels, financial intermediaries and private investors. In this market buyers are more specific about their requirements.
1.2 STATEMENT OF PROBLEM
Capital market is a market that deals with long term funds and procedure for financing long-term investments. it is also a market where by small business cannot benefit because of its high interest rate.
I want to investigate on some of the problems that hinders the promotion of capital market in Nigeria, also the corrective measure which could be used in solving these problems.
Some of the problems the researcher intends to research are:
- Dearth in securities
- Lack of adequate publicity
- Retention attitude
- Low savings
- Lack of interest in securities