Nigerian Stock Exchange Case Study

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i. Determining the amount of price and time when securities of companies are to be sold to the public whether through offer for sale or subscription. ii. Registering all securities proposed to be offered for sale to or for subscription by the public. iii. Maintaining surveillance over the securities market to ensure orderly, fair and equitable dealing in securities. iv. Protecting the integrity of the security market against any abuses arising from the practice of insider trading. iv. Acting as regulatory apex organization for the Nigerian capital market including the Nigerian Stock Exchange and its branches to which it would be at liberty to delegate power.
v. Creating the necessary atmosphere for the orderly growth and development
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It was incorporated via the inspiration and support of businessmen and the federal government. But owned by about 300 members. The membership includes financial institution, stockbrokers and individual Nigerians of high integrity, who have contributed to the development of the stock market and Nigerian economy.
The Nigerian stock exchange started with the incorporation of the then Lagos stock exchange in 1960 as earlier stated. Trading commenced on the exchange in 1961 after the enactment of the Lagos stock exchange Act of 1961, the self regulatory organization was subsequently reorganized and renamed the Nigerian stock exchange 197, based on the report and recommendation of Pius Okigbo financial system review commission.
The stock exchange is thus an institution of capital market, which provides trading floors where all dealing members operates on every business day. The exchange now has nine (9) branches and all the branches function principally as trading floor.
Functions of Nigerian Stock Exchange:
i. To provide opportunities for raising new
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The stock exchange serves as a medium for the dissemination of information to industrialists and investors.
6. The prices quoted in the stock exchange can serve as economic indicators.
7. It assists government in implementing its monetary policies.
8. Prices quoted on the stock exchange can serve as a parameter for investors to measure the goodwill of their companies.
9. The stock exchange advises the government, industrialists and investors that deal in securities.
10. By giving shares an introduction to the exchange, the stock exchange assists private companies to go public without issuing new shares.
11. It encourages members of the public to invest in viable business ventures.
12. The stock exchange makes long term funds available to public companies. Emmanuel Ewumi (2013) 2.2.6 ECONOMIC GROWTH & DEVELOPMENT AND THE CAPITAL MARKET.
Economic growth means an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth is a process by which a nation wealth increases over time. The most widely used measures of economic growth is the rate of growth in a country’s total output of goods and services gauged by the gross domestic product

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