The Role Of Nigerian Stock Exchange In Industrial Development

The Role Of Nigerian Stock Exchange In Industrial Development

Abstract

The Nigerian stock exchange( NSE) has been created to serve colorful function similar as frequently of business guideline to top business operation concerning cost of capital for the Nigerian stock exchange provides avenues for long term investment. These serve credited to the stock exchange is anticipated to produce positive effect on the general business and artificial growth of the country.

still, this exploration work is determined to estimate the effect of the stock. Exchange on the general business growth especially in recent times. In carrying out the exploration work with the below end in mind sweats will be made to expose applicable findings therefore drawing necessary results and recommendations to palliate some awaited problem on the Nigerian stock exchange to be bared during the exploration work.

Chapter One

Preface

Background Of The Study

Artificial growth forms the base for artificial development isn’t only demanded for its capability to ameliorate living standard. It also acts as a armament for erecting public strength and prestige. thus artificial development implies the increase of artificial, expansion of quality and quality of affair and the institutionalization of artificial growth process. It also involve specialized conditioning of a own routine nature concerned with rephrasing exploration findings or other with rephrasing exploration findings or other scientific knowledge into products or process.

With the conception of investment as a central factor in the acceleration of artificial growth and development and the elevation given to industrialization, way have the establishment of the Nigerian stock exchange( NSE) the elaboration of uninterrupted actuality of the Nigeria stock exchange has always been small lots of shares to e prorate into lumbs large enough to be bought by institutions give vast figures of different shares to be trades and furnishing a broad request in government securities its profitable significance depends on its capability to mop up fiscal capital for investment purpose these include furnishing liquidity and enhancing these marketability of new issues of stock therefore reducing the real costs to business establishment by expanding the compass for carrying fund.

Other functions of the stock exchange include the offer of guidance to the business operation in relation to the present cost of capital so that the business man can determine his position of investment applicable to the establishment. Access to the vast number of capital that are in veritably small quantum of plutocrat that in their total have s recommend over vast amounts of wealth. It also make it possible for the transfer of finances that imposes only a minimum of executive sweats he lender. By this exertion the stock exchange is suitable to give an avenue for long term investment to be financed by finances handed by individualities numerous of whom to make it available for a short term or with draw it at will.

The competitive nature of the stock exchange makes it possible to allocate finances efficiently which is achieved by the request capability to available companies securities in a manner grounded on the capitalized value of the company’s anticipated unborn earnings.

supposedly, only if stock are valued in this way will finances be handed most abundantly and at most reasonable terms to the most promising invention who account to the classical profitable proposition has the topmost use for them and who’s the bone that can gain the gains which will serve as the investors prices. And it in when shares are valued in relation to the anticipated capitalized value of the establishment that effective correctional advice which punishes operation whose operation are hamstrung or empty.