AN EVALUATION ON THE INFUENCE OF GLOBAL ECONOMIC MELTDOWN ON THE ECONOMY.
No of pages
|MS Word & PDF|
The custom academic work that we provide is a powerful tool that will facilitate and boost your coursework, grades and examination results. Professionalism is at the core of our dealings with clients
For more project materials and info!
Call us here
The economic global meltdown stated. In the United State of America in year 2007. However it assumed to be a danger status in September, following the collapse of two of the world biggest and investment, bonus namely Lehman Brothers and Merrill lynch. Like wide fire danger spread to other parts of the world prompting major stock markets to tunable and bumble.
This resulted into capital flight which triggered huge demand for foreign exchange between October and November in Nigeria.
From $1.27billion sold in September, foreign exchange sale shot up to $3.4billion in October and $ 3.1 billion in November. This prompted a sharp depreciation of the Naira as the exchange rapidly rose from N1/7 per dollar between November and December.
But besides, the above impact of the global economic meltdown on Nigeria capital market has been relatively minimal. Unlike capital markets the developed countries which suffered credit crunch, several illiquidity and recorded losses as well as take over by government through bailment measures.
The downturn in the capital market experience in the year 2008, will remain indelible in the minds of many investors and other stakeholders. In the Nigeria economy as the bubbled which was built several years ago. Suddenly, bursts leaving the investor with better experience, before the intervention by regulations to stem the pathetic situation.
1.1 BACKGROUND OF THE STUDY
The initial attempt to establish capital market in Nigeria dated back to 1959, with issue of First Nigeria Development Loan stock by the Central Bank of Nigeria.
This was followed by the inauguration of the Lagos Stock exchange in 1960 it commenced to operation in June, 1961.
Another important development which catalized the growth of the market was the compulsory incorporation of branches of Foreign Corporations following the enactment f the company act in 1968.
In 1972 the promulgation of the Nigeria Enterprises promotion Act otherwise called the indigenization programme gave further implies of the market development accounting for 126.7% smooth in the number of listed equities on the exchange.
The impact of 1977 amendment of the indigenization Act 1972 led to growth of 170.6% in industrial equality overall the development security.
The implementation of true indigenization programme of 1972 and 1977, the statutory requirement that certain public institution like the pension find include the development banks should be a greater percentage of their instrument in the market security.
- STATEMENT OF RESEARCH PROBLEM/ QUESTION
The focus of this research will be to identity thus effect of Global Economic Meltdown of Nigeria Capital Market. In this following research questions.
- What are the effect of Global Economic Meltdown on Nigeria Capital Market.
- What are the effect of Global economic Meltdown on the Nigeria Economy.
- What are the affect of Global Economic meltdown on the Nigeria Investors.
- What are the effect of global economic meltdown on Nigeria currency?
- AIMS AND OBJECTIVES OF THE STUDY
The research project main focus is to take cursory look at the effect of global economic meltdown on the Nigeria Capital Market. Therefore, the aims and objectives of the study will include:-
- To examine the effect of global economic, meltdown on the Nigeria Capital Market.
- To examine the effect of Global Economic Capital Market.
- To examine the effect of Global Economic Meltdown on the Nigeria Economy.
- To examine the effect of Global Economic Meltdown on the Nigeria Investors.
- To examine the effect of global economic meltdown on the Nigeria Currency.