Full Project-THE ROLE OF THE NIGERIA STOCK EXCHANGE IN CAPITALS FORMATION AND ECONOMIC DEVELOPMENTS

This study is concerned with evaluation of the role of the Nigeria stock Exchange in capital formation and economic development. The Nigeria stock exchange being responsible for the mobilization of funds has being having divergent views over its impact by different quarters some has been praising stock exchange for its role in fund mobilization for capital formation, which invariably leads to economic development, while some has being criticizing it on its ineffectiveness. Result of various scholars on the above topic assigned greater role to the Nigeria stock exchange as an avenue for capital formation especially in developing countries like

Nigeria. However, this study is a product of it observations mode and the reflection gathered from these previous studies and it is aimed at revealing the extent to which the Nigerian stock exchange had been performing its funds mobilization role crucial to the development of the economy.

TITLE PAGE I

APPROVAL PAGE II

DEDICATION III

ACKNOWLEDGEMENT IV

ABSTRACT VII

TABLE OF CONTENTS IX

1.1 STATEMENT OF PROBLEM 8

1.2 PURPOSE OF STUDY 9

1.3 SIGNIFICANCE OF THE STUDY 9

1.4 STATEMENT OF HYPOTHESIS 10

1.5 SCOPE OF THE STUDY 12

2.1 INTRODUCTION 13

2.2 THE IMPACT OF CAPITAL MARKET RELATION TO STOCK EXCHANGE TOWARDS ECONOMIC DEVELOPMENT 17

2.3 HISTORICAL DEVELOPMENT OF THE NIGERIAN MARKET 21

2.4 THE MAJOR INSTITUTION IN THE NIGERIAN CAPITAL MARKET (NIGERIA SECURITIES AND EXCHANGE COMMISSION) 23

2.4.1 CAPITAL ISSUES COMMITTEE23

2.4.2 OTHER MAJOR INSTITUTION IN THE NIGERIAN CAPITAL MARKET 26

2.4.3 THE NIGERIAN STOCK EXCHANGE29

2.5.1 HISTORICAL DEVELOPMENT 33

2.5.2 MEMBERSHIP AND OPERATION 37

2.5.3 FUNCTIONS OF THE EXCHANGE 38

2.5.4 STRUCTURE OF THE EXCHANGE 39

2.5.5 STOCK MARKET ACTIVITIES 40

2.6 EXPECTED ROLE OF THE NIGERIAN STOCK EXCHANGE IN CAPITAL FORMATION.41

2.7 EXCHANGE ROLE OF THE NIGERIAN STOCK EXCHANGE IN THE NIGERIAN CAPITAL MARKET ESPECIALLY AS RETARDS NEW ISSUES THE PRIMARY MARKET. 44

3.1 POPULATION OF THE STUDY 50

3.2 METHOD OF DATA COLLECTION 51

3.3 PROCEDURE FOR DATA ANALYSIS 52

3.4 VALIDATION OF THE INSTRUMENT 52

4.1 DATA PRESENTATION AND ANALYSIS 54

4.2 TEST OF HYPOTHESIS 59

5.1 FINDINGS 63

5.2 CONCLUSION 68

5.3 RECOMMENDATION 66