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THE IMPACT OF STOCK EXCHANGE REFORMS ON NIGERIA CAPITAL MARKET ( A CASE STUDY OF LAGOS STATE STOCK EXCHANGE)

  • Department: ACCOUNTING
  • Chapters: 1-5
  • Pages: 63
  • Attributes: Questionnaire, Data Analysis, Abstract
  • Views: 154
  • PRICE: ₦ 3,000
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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

          The impact of the global financial crisis devastating for the Nigeria capital market has given the Security and Exchange Commission (SEC) opportunity to reposition the Nigerian Capital Market to play a pivotal role in capital formation and the development of the Nigeria economy. The aim is to build a world class market which will effectively compete for long term capital internationally; attract and retain domestic capital and be the principal source of medium to long term capital to the industry, both large and small scale industry.

          Basically, a stock exchange was established to assist in this mobilation of adequate fund for development programme through such action as;

1.   Enhancing the liquid nature of share and bonds by making them easily disposable and saleable.

2.   Providing and guaranteeing a free and continuous market for the capital already invested by facilitating the exchange of security within minimum delay.

3.   Lastly, in the absence of market distortions and imperfection, prodiding adequate mobility of capital and direct the flow of funds to profitable and move successful industrial enterprise for developments. However, he needs to mention briefly some important aspect of the listing requirement on the Nigeria stock exchange (NSE) among them are.

4.   Size of Capital: A total equity of the company must be at least I million (although by special dispensation there is only quoted company with a paid up capital of N904,900).

1.2 Statement of The Problem

          The reforms of the stock exchange market create serious problems in the capital market since all banks need to readjust to meet up with the reforms.

          The impact of the global financial industry in diversifying and adoption of new are banking and use of information and communication technology ICT in the banking has expose the need to carry out in-depth research on how the stock exchange reform on Nigeria capital market.

1.3 Research Hypothesis

          Ho:    There is no significant relationship the organization of the stock exchange and the capital market.

          Hi:     There is significant relationship the organization of the stock exchange and the capital market.

1.4 Purpose of the Study

          The main aim of this study is to consider the impact of recent re-organization of the Nigeria stock exchange on the capital market.

          Also, the extent to which this recent re- organization has gone on the activities of the Nigerian stock exchange will be explained

          Finally, the extent to which the exchange has achieved it regulatory roles in the capital market.

1.5 Significance of the Study

This study apart from fulfilling academic requirement also has the following significance.

1.6 Scope of the Study

          The scope of this study will be limited to the regulatory role being played by the Nigerian stock exchange (NSE) on the capital  market emphasis will be land on the Nigerian stock exchange only. This is done to the fact that the (NSE) is a vegetable organ for capital market.

1.7 Limitation of the Study

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