THE IMPORTANCE OF THE NIGERIAN CAPITAL MARKET TO BUSINESS ORGANIZATIONS. (A CASE STUDY OF PORTHARCOURT STOCK EXCHANGE)


Content

 

 

 

 

ABSTRACT

 

The Nigerian capital market was established to perform certain functions, which are paramount to the development and growth of the economy. This includes the accumulation of capital from diveresed fund serves and make such available to users of funds.

 

The purpose of this study was to determine the extent to which the development of business organization, to establish the importance of the capital market in servicing the banking and manufacturing sector of business.

 

Hypothesis formulate in this regard are:

 

Ho1   The Nigerian capital market is of no importance to business organization

 

The Chi-square was used to test the hypothesis.

Questionnaire were distributed.

The study made the following recommendation

1)      Increased awareness should be create especially in rural areas.

2)      Compensation of trade transactions should be encouraged.

3)      More couraces taking capital market in the tartaric institution         should be encouraged.

4.       Investigation needs to be carried out on the influences of the Nigerian capital market on business organization.

 

 

TABLE OF CONTENT

CHAPTER ONE

1.1     PROBLEM INDETIFICATION AND PURPOSE OF STUDY

1.2     RATIONALE OF THE STUDY

1.3     SIGNIFICANCE OF THE STUDY

1.4     DEFINTION OF TERMS

          CHAPTER TWO LITERATURE REVIEW

2.1     THEORITICAL REVIEW

2.2     ENGPERICAL EVIEW

          RELATIOSHIP BETWEEN THE CAPITAL MARKET AND   ECONOMIC DEVELOPMENT

                                      CHAPTER THREE

HYPOTHESIS, RESEARCH TOOLS AND PROCEDURE, SOURCES OF DATA, LIMITATION OF STUDY

 

HYPOTHESIS OF STUDY

3.2     REASEARCH TOOLS AND PROCEDURE

          SAMPLING PRODCEURE

3.3     This research work is based on information gotten from primary    and secondary sources.

3.4     LIMITATIONS OF THE STUDY

          METHODS OF DATA ANALYSIS

CHAPTER FOUR: PRESENTATION, ANALYSIS AND DICUSSION OF DATA

 

4.1     PRESENTATION OF DATA

4.2     ANALYSIS OF DATA ACCORDING TO TEST OF         HYPOTHESIS.

          Statement of hypothesis  

4.3              DISCUSSION OF RESULTS

          CHAPTER FIVE:        SUMMARY, CONCLUSION AND           RECOMMENDATIONS

5.1     SUMMARY OF THE STUDY

5.3A  RECOMMENDATION OF THE STUDY

B.      RECOMMENDATION FOR FURTHER STUDIES

                   BIOLOGRAPHY 

APPENDIX

QUESIONAIRE FOR CAPITAL MARKET OPERATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                   CHAPTER ONE

1.1     PROBLEM INDETIFICATION AND PURPOSE OF STUDY

 

          In this research work, the researcher intends to study the       importance of the Nigerian capital market to business organisatio   of this country. Apart from its fund mobilization function, it thus performs intermediacy role by making it possible for those who   have surplus funds to be able to loan it out to those in need of it for           productive purposes (Orji, 2000)..

 

          The purpose of the study is stated as follows:

 

1.       To determine the extent to which the Nigerian capital market          contributes to the development of business organizations

 

2.       To establish the importance of the capital market in semicing the    banking an manufacturing sectors of business.

3.       to make recommendation on how to improve the operation s of the          market which will aid in the development of business organizations and the economy as a whole.

 

 

1.2     RATIONALE OF THE STUDY

          I decided to write on this topic because of the following reasons;

1.       I have special interest in the Nigerian capital market business of its          significant role in the banking industry. For example, so many      banks are running to the Nigerian capital market to raise funds, so       that they can meat up with the new capital base of N25 billion. As     a banker, I am supposed to know how the banks raise their funds.

 

2.       I hope that through this project work other people who ar not aware       of the importance of the Nigerian capital market will get to know    about it after reading my work.

 

 

 

 

 

 

 

 

 

 

 

1.3     SIGNIFICANCE OF THE STUDY

          This study will enlighten the business proprietor on how to raise    the much needed capital through the Nigerian capital market to     improve his business performance.

 

          This study will also enlighten the general public and investors on   the need to invest in the Nigerian capital market.

 

          It will also enable the students to read or study more about the       Nigerian Capital market.

 

          The study will also enable other researchers to carryout more         research on the topic

 

          Also the authorities who are already conscious of the problems of the stock exchange who benefit from the recommendations of this        work for improvement.

 

1.4     DEFINTION OF TERMS

1.       CAPITAL MARKET:  It is a market where long-term goods are     obtained or where long term functional assets such as debenture,    stock, shares are bought and sold.

2.       STOCK MARKET:  is an institution in a boarding conceived          capital market, consisting of arrangement of mechanisms for      raising capital though the initial issue of securities.

 

3.       PRIMARY MARKET: is a market where new securities are traded           for the first time by the issuing co-operation.

 

4.       SECOUNDARY MARKET: is a market where second hand o        previously issued securities are braded.

 

5.       PRICE EARNING RATION: This represents the current investors           re willing to pay for each naira of the forms earning.

 

6.       PRICE EARNING INDEX: Means compilation showing average    current market value of common stock compared with their       average market value at an earlier base period.

 

7.       CALL OVER: is a method adopted by the Nigerian stock dealers    and any interested dealer indicates his interest by going into      bidding.

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