ABSTRACT

A case study of Nigeria, the contribution  of stock  exchange  in the banking  sector and in economic  well being of the general public.

          In a nutshell, the stock exchange aims to provide an atmosphere where buyer and sellers of securities  meet to buy  and sells  shares (securities)

          The importance of stock exchange  cannot  be over emphasized  in the banking  sector and even it performs prominent roles in Nigeria  economy at large.

In developing our economy  in Nigeria in Banking sector, with  stock exchange  had came into being so as to perform this active part in  banking  and Nigeria  as well, in view of the above, the stock exchange  market aimed at motivating and encourage the Investor, Brokers as well  as the general public  to have improvement in their aims of buying and selling securities, through  proper usage of the instrument  used in the stock exchange market.       

CHAPTER  ONE

• INTRODUCTION
  • background of the study

The  Nigeria stock exchange provide a market where holding of existing “ quoted” shares wishing  for sell; such share be sold by making contact with  individual and institution  which are interested in buying  and selling of shares, stocks bonds and security.

Also  any one who has surplus  fund after current  living expenses  and a reserve for an emergency  might decide to invest such surplus fund in security.

The stock exchange  is otherwise known as “ security market” the stock  exchange  play on important  roe in the economy in mobilizing resources  for development of capital market, the stock exchange  provides facilities for bringing together suppliers and users of capital

Security Market:

          A stock exchange therefore, is a market where large / small shares of companies and government securities  are traded.

          Former director general of the Nigeria stock exchange apostle H.I Alike describe  the stock exchange  as the corner stone  in the nations capital  formation and the achieving of the engine of the financial institution   resolve for example.

          Nigeria security  and exchange commission (N.S.E.C) of public  enterprise, savers, underwrite issuing houses, fund user, stock brokers, security registers.

          The establishment of the exchange in 1960 market the informal  birth of Nigeria capital market which serves  as a range of purpose including the following.

• Mobilization of savings  from numerous economics units of economic growth and development.
• Provision of adequate liquidity to investor.
• Broad of the ownership base of Assets as well as the creation of private sector.
• Provision of alternative source of fund for government other than taxation.
• Encouragement of more efficient allocation of new investment through price mechanism
• Encouragement of more efficient of given amount of tangible wealth through changes in the composition and ownership wealth
• Promotion of rapid changes that exist to link together  sellers and buyer of quoted investment. They help to widen there base of ownership of public companies. Stock  liquidity  also provides especially  for making it easy  for government and industries to raise fund (s) for  development of their 

1.2 OBJECTIVE OF THE STUDY

The main aims of the research  work are as follows:

• To focus on the examination of the role of stock exchange in Nigeria in the development of capital 
• To show the  history of  stock  exchange and review of their operation  in the past
• To bring into limelight the effect and importance of stock exchange as a unit  of capital  market on industrial development
• To show significant impact on the investor and issues of the securities
• To know the nature and participant of the capital and exchange  in the capital  market operation
• To know the nature of participant in the capital market.
• To bring out limitation of problems of Nigeria stock exchange in the capital market operation.

1.3 Scope Of The Study

With available data on the Nigeria  stock exchange system the case study will focuses its attention on the management and role of the stock exchange system.

This  research work was not carried out without difficulties, many of the limitation which is considered very important are listed below:

• Financial Problem: considering  the global  economic melt down and devastating  economic  problems  confronted by non- political  aligns  in the country, the researcher  is confronted with financial  inadequacy  due to other academic  commitment  which involves  money, to say categorically  that the cost used in caring out this research  work involves thousand (s) of naira. It is not an over statement
• Time Factor: Another prominent obstacle  faces by the researcher is that of time factor. Talk about the time took to travel, planning  organizing  and collecting of materials to be used for the write-up
• Transportation Problem: During the period of carrying out this research  work in collection of  data the researcher spent a lot of money on the cost of transport fare (s)  and on some occasion the researcher will have to “trek”
  • STATEMENT OF THE PROBLEM

The presentation  is mainly concerned with the role of stock  exchange  in the development of capital market in Nigeria stock exchange.

          In this research  work, the role of stock exchange in Nigeria stock exchange shall be thoroughly  examined with particular emphasis on the following

• Exchange rate problem the unstable nature of the exchange rate is a major headache to the Nigeria stock exchange prior to march 1992, exchange rates were still easy  and investors could be able  to invest their money
• The number of companies trading on the floors is alarmingly affected by the operation of the exchange