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The Impact Of Stock Exchange In Nigeria Economy
[A CASE STUDY OF NIGERIA STOCK EXCHANGE]
CHAPTER ONE -- [Total Page(s) 2]
Page 1 of 2
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CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND INFORMATION
This impact of stock exchange in the Nigerian economy is the topic of this project work. It examines the impact which the stock exchange plays in Nigerian economy when we talk of government securities.
1. A market for government securities
2. A market for private shares
This creates the need for mechanism for selling and buying of securities or shares. The stock exchange with price support at per.
The price of government stock exchange is fixed and sold to buyers according to their needs. The market for private securities.
From government securities e.g. more trading is induced. The exchange is mainly the place for the purchase and sales of securities hared quoted securities.
Quoted securities are those which the stock exchange council has agreed, may be sold on the exchange only the securities listed or quoted companies are traded on the exchange firm must meet the listed requirement of the stock exchange.
The Nigerian stock exchange started as the Lagos stock exchange in 1960. It commenced the Nigerian stock exchange in 1977 and established in Kaduna and Port Harcourt.
Securities dealt on the stock exchange include industrial e.g. Dentures ordinate shared, preference shares, cult edges securities.
The stock exchange is governed by its council which is elected by members of stock exchange. It performs following functions.
1. To protect that the rule of the stock exchange are observe by its members.
2. To protect the inverting public
The membership are three groups:-
FOUNDATION MEMBER:
Include those who signed the memorandum of association in 1966 when Nigerian stock exchange was Incorporated C.T. saving and co (NIG) LTD Investment Company of Nigeria Ltd, Sir, Odumwgwen, Akintola Williams and Alhaji Shedu Surker.
ORDINARY MEMBERS:
Those admitted on application to the Nigeria stock exchange these are firms or institution that intend to seek dealing membership or which are in a position to give financial and investment advise to the exchange.
DEALING MEMBERS:
Individual person firm or co-operate body licensed by the council of the Nigeria stock to deals in stock, shares and all for the time being granted quotation on the Nigerian stock exchange.
1.2 IMPORTANT OF THE STUDY
Despite the tremendous impact played by stock exchange they benefit to operates in the stock exchange market and Nigerian economy enjoy. There is little evidence to show that the stock exchange does not manifest some optimizing characteristics which are very important in the development of capital market and the Nigerian economy as a whole. The study is relevant and justifiable to the extent that it will after examining its problem, the role and impact of the evaluated and measure that will be sufficiently discussed.
However, the main focus and objectives of the analysis includes the following.
- To trace the history of Nigerian stock exchange.
- To highlight the impact of the stock exchange in Nigeria economy.
- To highlight the function of the stock exchange market to the economy.
- To examine the deficiencies in the stock exchange.
- To make recommendations for the development of the stock exchange to the Nigerian economy.
CHAPTER ONE -- [Total Page(s) 2]
Page 1 of 2
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