BUSINESS FINANCING THROUGH THE NIGERIAN CAPITAL MARKETS A STUDY OF NIGERIA STOCK EXCHANGE
ABSTRACT
The role of the capital market in business financing through the capital market can not be over emphasized. Finance is the livewire of every business organization because the success or otherwise of all business entities are very much depended on its capital and how the capital is raised. Business finance could be raised by either short term or long term financing instrument. Business finance could also be obtained internally or through external sources. Long term financing instrument such as equity, bonds and derivatives are the major instruments traded on the floor of exchange. The NSE performs a number of functions which include creating opportunities for long term borrowing, registration and or quotation of companies’ shares for trading on the floor of the exchange, regulating the activities of operators on the floor of the exchange, promotion of increased participation by the public in the private sector of the economy and the provision of appropriate machinery to facilitate further offering of stocks, shares and other securities to the public among others. The encouragement of the public to raise funds for business enterprises is a function worthy of mention. Surprisingly few companies have made use of the facilities provided by the NSE. Most Nigerian business men are either ignorant of these facilities as a source of long term financing or are avoiding the exchange because of the perceived long bureaucracies involved. This has been identified as one of the major bottleneck of business enterprises who are in dare need of more and cheaper sources of funding to grow competitively in Nigeria. To effectively analyze the role of NSE, a discussion on its belief history and examination of its activities provided sufficient basis for a critical analyses of its role. From this critical analysis of the NSE , it is discovered that its role in business financing is a function of its operational problems and the lukewarm attitude of Nigerian entrepreneurs towards its facilities. It was suggested against this background for the NSE to further decentralize its operations, review its requirement of quotation, introduce more robust method of trading, clearing, delivery and settlement of transactions in line with global best practices, improve its legislation to reflect current realities, embark on more awareness campaign and check inimical activities of stock brokers among others.
TABLE OF CONTENT
Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi
CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10
CHAPTER TWO
LITERATURE REVIEW – – – – – – -11
CHAPTER THREE
Research methodology – – – – – – -39
Design of study – – – – – – – -40
CHAPTER FOUR
Presentation, analysis and interpretation of data – -48
CHAPTER FIVE
Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69
