AN APPRAISAL OF THE IMPACT OF STOCK PRICING ON BUYERS BEHAVIOUR IN THE NIGBRIA CAPITAL MARKET.
ABSTRACT
The research investigates “An Appraisal of the Impact of Stock Pricing on Buyer Behavior in the Nigeria Capital Market.” According to the report, the growth of the Nigerian Stock Exchange over the years, particularly since its foundation, has been quite gradual when compared to other stock exchanges founded at the same time in other countries.
A research design is a plan or strategy that enables the research to identify suitable approaches to data collection and analysis. It falls within the category of research methodology. As a result, research design is a member of a scientific study of research method group.
The whole questionnaire was collected and evaluated using basic percentages during the course of this investigation. Following this, the theories developed were tested. The T-test approach was employed for data analysis in this study project.
The government will use development stock and estate revenue bonds to raise more funds for economic development stock and the state.
In Nigeria, the capital market is the primary source of long-term finance. In light of this, it must be efficient in all aspects in order to contribute significantly to the country’s economic progress. As a result, depending on Nigeria’s degree of development, we might argue that the capital market is only marginally efficient.
TABLE OF MATERIALS
INTRODUCTION TO CHAPTER ONE
1.1 The Study’s Background
1.2 Formulation of the Problem
1.3 The Study’s Objectives
1.4 Research Proposals
1.5 Hypotheses for Research
1.6 Scope of the Research
1.7 Importance of the Research
1.8 Operational Terminology Definition
References
REVIEW OF LITERATURE IN CHAPTER TWO
2.1 The Beginning
2.2 The Nigerian Capital Market’s History
2.3 The Structure of Nigeria’s Capital Market
2.4 Nigerian Capital Market Regulatory Environment
2.5 Security and Exchange Commission
2.6 Functions of Nigeria’s Capital Market
2.7 Admission to the Nigerian Stock Exchange
2.8 Advantages of Listing (Public Quotation) on the Nigerian Stock Exchange
The Stock Exchange
2.9 Listing Methods on the Nigerian Stock Exchange
2.10 The Nigerian Stock Exchange’s Organization and Operations
2.11 Nigerian Stock Exchange Operations
2.12 Securities Pricing Methods on the Nigerian Stock Exchange
2.13 Nigerian Stock Exchange Pricing Efficiency
2.14 Customer Behavior
2.15 Conclusion
References
RESEARCH METHODOLOGY (CHAPTER THREE)
3.0 Getting Started
3.1 Research Methodology
3.2 Rephrasing of Research Questions
3.3 Reiteration of Research Hypotheses
3.4 Research Techniques
3.5 The Study Participants
3.6 Design and Procedure for Sampling
The Research Instrument (3.7)
Questionnaire Validity (3.8)
3.9 Instrument Dependability
3.10 Data Analysis Method
References
PART IV: DATA ANALYSIS AND PRESENTATION
4.1.1 Introduction
4.2 Questionnaire-Related Analysis
4.1 Questionnaire Structure
4.2 Hypothesis Evaluation
4.3 Conclusion
CHAPITRE FIVE:
RECOMMENDATIONS, CONCLUSION, AND SUMMARY
5.1 Findings in Brief
5.2 Final Thoughts
Recommendations (5.3)
Bibliography
Questionnaire
CHAPITRE ONE
INTRODUCTION
1.1 The Study’s Background
To stay afloat in today’s globalization, deregulation, and market liberalization, any economy needs an efficient financial system to direct the allocation of its resources capital markets and institutions, of which the stock exchange is an integral part of and has become of paramount importance in a dynamic economy such as Nigeria.
The capital market is a subset of the financial system that promotes economic progress. This is accomplished by the efficient channeling of funds from investors into productive sections of the economy. It allows the government and businesses to raise long-term funding to fund their operations (Nwankwo, 2000).
The capital market is made up of a network of institutions and individuals, including regulators and market participants, who work together to keep the market running smoothly. To put it another way, the capital market is made up of fund providers (investors), fund users (businesses and governments), intermediaries (stock brokers, issuing houses, registrars), and regulators (SEC, the Nigerian Stock Exchange and Central Bank of Nigeria).
The Nigerian Capital Market is divided into two parts: the primary and secondary markets. The main market is where securities are first sold to investors by the issuing firm or government (yisa, 2001). Few investors can be persuaded to tie up their funds permanently if the issuers use the funds raised to increase production, create infrastructure, and so on.
As a result, securities are typically negotiable, allowing the initial buyers to re-offer the securities to any interested party at any mutually suitable price. It is thus a function of the securities market to provide a forum in which such mutually acceptable prices can be determined. In this regard, it is critical to examine the stock pricing function of the Nigerian capital market in relation to buyer behavior.
Osuagwu (2006) defines buyer behavior as the actions that customers or clients will take when searching for, purchasing, utilizing, assessing, and discarding products, services, and ideas that they believe will meet their requirements and desires. Buyer behavior is thus the study of how individuals decide to spend their resources on consumption-related things, as well as their evaluation of such purchases. As a result, this study evaluates the impact of stock pricing on buyer behavior in the Nigerian capital market.
1.2 Problem Identification
As a result of both institutional and individual investors putting their money at risk in order to make a decent return on securities acquired in firms, it is vital to know whether shares and securities acquired in companies listed on the Nigerian Stock Exchange are properly priced. However, there is a strong necessity to critically analyze the following issues in relation to the study topic:
a. A lack of information from publicly traded corporations
b. Lack of understanding of the stock exchange’s operations and activities.
d. Difficulty acquiring a quotation on the stock exchange
d. A lack of awareness of how shares and securities are priced on the Nigerian Stock Exchange.
1.3 The Study’s Objectives
Given the widespread ignorance surrounding pricing processes in the Nigerian capital market, the following precise goals are defined for this study:
a. To evaluate the impact of securities price on buyer behavior in the Nigerian capital market.
b. To assess the various procedures utilized in the determination of shares and securities.
b. To investigate the efficiency of the securities market.
d. To investigate how public investors rely on the prices of securities in this market.
a. To develop a solution to the difficulties in pricing securities on the Nigerian Stock Exchange.
1.4 Research Concerns
The following questions will be addressed by this study project:
I How do you assess the impact of securities price on buyer behavior in the Nigerian capital market?
(ii) How relevant is the Nigerian capital market’s way of pricing securities in comparison to other methods available?
(iii) What factor is most responsible for the efficiency of the securities market?
(iv) How much faith do public investors place on the values of assets in this market?
(v) What are the potential options for securities pricing on the Nigerian Stock Exchange?
1.5 Research Theories
For the purposes of this research, it is preferable to test the hypothesis so that valid conclusions can be drawn to accept or reject the assumptions on the following grounds.
The First Hypothesis
Ho: There is no link between security pricing and buyer behavior.
Hi: Securities pricing and buyer behavior have a link.
Hypothesis No. 2
Ho: There is no link between the process of pricing securities and the Nigerian capital market.
Hi: The Nigerian Capital Market and the mechanism of pricing securities are linked.
Three Hypothesis
Ho: There is no relationship between the efficiency of the securities market and buyer behavior.
Hi: There is a link between the efficiency of the securities market and buyer behavior.
Fourth Hypothesis
Ho: There is no correlation between public investors’ reliance and security prices.
Hi: There is a link between public investors’ trust and security prices.
1.6 The Study’s Scope
As the title suggests, this study focuses on the Nigerian Capital Market’s price function and its relative influence on buyer behavior.
As a result, the research is limited to the history, operations, and functions of the Nigerian capital market in terms of stock price and buyer behavior.
As a result, chosen publicly traded corporations will be employed as units of analysis.
1.7 Importance of the Research
This study would be extremely beneficial to market participants such as stockbrokers, issuing companies, and the like, since it would highlight their shortcomings in the field of securities pricing. It would also be beneficial to public investors because it would educate them on which stocks to invest in.
Students of finance, accounting, economics, marketing, and business administration would benefit from the study as well, since it would educate them on the pricing function of the Nigerian capital market and. The study will also aid policymakers in the Nigerian capital market in creating methods to increase pricing efficiency and, as a result, overall efficiency.
1.8 Operational Terminology Definition
The next paragraphs define a number of ideas that are crucial to this study. The definition’s objective is to aid an explanation of these terms so that the reader fully understands the context in which they were used in the study:
Buyer Behavior: This is the foundation of effective marketing technique. It covers major issues concerning a buyer’s/consumer’s/behavior client’s toward a product, service, or idea.
The capital market is the market for long-term capital, often known as long-term financing assets. It is a market for long-term financing assets such as preferred and common stock debentures and bonds.
Stock Pricing: The price of a company’s stock is an indication of its success; investors can invest in the most lucrative companies based on the stock prices of the companies.
The Securities Market: This is the market in which securities are purchased and sold. It is divided into three parts: the capital market, the money market, and the secondary market.
Primary Market: When a company issues new securities, such as bonds or common stock, the securities are offered in the primary market because they are new issues. Any subsequent sales of the securities take place on the secondary market. The money market also has a primary market.
Secondary Market: This is the market that exists as a result of the future sale of securities that were previously traded on in the main market.
Right Issues: This is the process through which publicly traded firms raise additional cash by issuing special shares to current shareholders of the issuing company. It is exemplified by the ongoing privatization process.
REFERENCES
N. Asika (2008): Behavioural Science Research Methodology. Longman Publishing, Lagos.
G.O. Nwankwo, The Financial System, Structure, and Growth. Longman Group Essex, Lagos.
L. Osuagwu (2006): Marketing Fundamentals. Management Review Limited, Lagos.
S. O. Taiwo (2000). Undergraduate Statistics. Fadec and Company Limited, Lagos.
A.K. Visa (2001): The Role of the Nigerian Stock Exchange in Economic Development in Nigeria. An unpublished B.Sc project submitted to the Accounting Department of Lagos State University, Ojo.
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