APPRAISAL OF STOCK PRICING IN NIGERIAN CAPITAL MARKET.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
APPRAISAL OF STOCK PRICING IN NIGERIAN CAPITAL MARKET.
Chapter one
INTRODUCTION
1.10 GENERAL OVERVIEW
For any economy to stay afloat in today’s globalisation, deregulation, and market liberalisation, it must have an efficient financial system to direct the allocation of its resources. Capital markets and institutions, of which the stock exchange is an integral part, have become critical in a dynamic economy such as Nigeria.
The capital market is a subset of the financial system that drives economic growth. This is accomplished by effectively channelling funds from investors into productive sections of the economy. It provides an opportunity for the government and businesses to raise long-term financing to support their activities.
The capital market is made up of a network of institutions and individuals, including regulators and operators, who work together to ensure the market runs smoothly.
In other words, the capital market is made up of fund suppliers (investors), fund users (businesses and governments), intermediaries (stock brokers, issuing houses, registrars), and regulators (SEC, Nigerian Stock Exchange, and Central Bank of Nigeria).
The Nigerian Capital Market is made up of two parts: the primary and secondary market. The main market is where securities are first sold to investors by the issuing firm or government.
The issuers utilise the cash raised to increase production, create infrastructure, and so on. Very few investors can be persuaded to commit their funds perpetually.
As a result, securities are frequently negotiable, allowing the original buyers to re-offer them to any interested party at any price that is mutually acceptable.
As a result, it is the responsibility of the securities exchange to ensure an environment in which such mutually acceptable prices can be established. In this regard, it is critical to examine the stock pricing function of Nigeria’s capital market.
1.11 Statement of the Problems
As a result of both institutional and individual investors risking their hard-earned money in order to earn a reasonable return on securities acquired in companies, it is critical to understand whether the shares and securities acquired in companies listed on the Nigerian Stock Exchange are property priced. However, there is a strong necessity to critically analyse the following pertinent concerns in relation to the study topic:
a. Lack of information from listed corporations.
b. Lack of understanding of the stock exchange’s operations and activities.
d. Difficulty acquiring quotations on the stock exchange
d. Lack of clear understanding of how shares and securities are priced on the Nigerian Stock Exchange.
1.12 Scope of the Study
As the title implies, this study focuses on the pricing function of the Nigerian capital market.
As a result, the study focuses on the history, operations, and functions of Nigeria’s capital market in terms of stock pricing.
In doing so, the Nigerian Stock Exchange (NSE) will serve as a case study. It would span the period from 1996 to 2000.
Need help with a related project topic or New topic? Send Us Your Topic