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The Impact Of Indutrialization On Nigeria Economic Development
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1.7 Significant of the Study
It
is a noted fact that for any meaningful economic transformation of a
country to take place, her capital market must be effectively active. It
has also been an identified fact that economic strength of any nation
is measured according to how active or effective her capital is in
performing its supposed functions.
This study will be of significant
interest to government and the central bank of Nigeria as they are aware
of the problems facing the capital market and remedies to tackle the
problems. The capital market plays important roles in economic growth so
with the evaluation of the capital market, the efficiency of the
capital evaluated and increased, hereby enhancing the rate of economic
growth in Nigeria. The study will be significant to institutional
operators of the market especially the Nigerian Securities and Exchange
Commission and the future researchers who may want to share this
experience.
This study will be of interest to investors who have been
at the receiving and of the crisis in the in the exchange. They will be
able to know the real cause of the problems, response of SEC and
efforts being made to protect their investment. The significance of this
study will provide foreign business with the facilities to offer their
shores and give the Nigerian public an opportunity to invest and
participate in the share and ownership or foreign business.
1.8 Organization of the Study
The
study is divided into five chapters and organized as follows. Chapter
one form the introduction part, this is where the main theme of the
research is given. It comprise of the statement if the problem,
objectives of the study, research questions and hypothesis, significance
of the study and organization of the study. Chapter two is the
literature review of the impact of capital market of the economic growth
of Nigeria. Chapter three forms the research methodology which includes
sources of data method of data analysis and model specifications.
Chapter four is the data analysis. Chapter five includes the summary,
conclusion and recommendation.
1.9 Definition of Terms
For the purpose of this research, the under listed terms are defined thus:
1.
Stockbrokers: These are agents that buy and sell securities on a stock
exchange on behalf of clients and receive remuneration for this service
in form of a commission.
2. Stock Exchange: A market for the sale and
purchase of securities, in which the price are controlled by the law of
supply and demand. Nigeria stock exchange started in 1960 but commence
operation in 1961.
3. Stock Holder: individuals, businesses and groups owning stock in a corporation.
4.
Capital Market: A market in which long term capital is raised by
industry and commence, the government and local authorities. The money
comes from private investors, insurance companies‟ pension funds and
banks, and it is usually arranged by issuing houses and merchant banks.
5. Financial Instrument: A contract involving a financial obligation. Example includes stocks, bonds, loans and derivatives.
6.
Shares: A share confers on its owner a legal right to have part of the
company profits and to exercise any voting rights attached to that
share.
7. Securities and Exchange Commission (SEC): SEC is the regulation arm of the Nigeria Capital Market.
8.
Arbitrage Pricing Theory: A model proposed by Stephen Ross in 1976 for
calculating returns in securities. It assumes a number of different
systematic risk factor without however, definitely identifying various
types of risks.
9. Financial Institutions: These are institutions
that use its funds chiefly to purchase financial assets, deposits,
bonds, loans and so on.
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