Background Of Study
Any economy's economic stability, long-term growth, and progress are all dependent on the capital market. The viability of the productive sector is directly related to the economy's long-term growth and development. To do this, the capital market must mobilize and allocate funds to meet the productive sector's funding needs through the use of financial instruments. The Nigerian Stock Exchange is the country's capital market trading institution (NSE). As a result, the NSE should establish a variety of financial instruments capable of providing a variety of investment channels and opportunities for both investors and borrowers. The Nigerian economy has recently faced the challenges of a shrinking productive sector as a result of the industry's failure to obtain appropriate cash to meet its needs from both the money and capital markets. The lack of a diversity of investment tools, low investor savings capacity for the market, and market capitalization that is significantly above 50% in favor of the services sector of the economy (banks, insurance businesses, etc.) have all been challenges for the capital market. Following the preceding assumption, the purpose of this research is to look into the impact of the capital market on the economy's productive sector: A study of the Nigerian Stock Exchange and Selected Quoted Stocks from 2000 to 2009. Equities, Debentures, Preference Shares, and Development Stocks should be the instruments of research.
Statement Of Problem
The Nigerian capital market, which before now was described as one of the fastest growing stock markets in Africa, witnessed serious crises and loss of value following price crashes, especially in the banking sector equities that constituted more than 50% of the market capitalization. As a result of this, the market capitalization, which in 2008 was about N12.5 trillion, is presently at N5.5 billion (source: Stock Exchange weekly activities summary 19/2/2010). The confidence of the investing public dropped, especially as it relates to investing in equity financial instruments. Thus, there exists the need to create a variety of financial instruments that can assist the market in providing:
(1) Investment windows for market participants, such as;
(a) Equity investment tools
(b) Fixed debt investment tool (corporate bodies)
(c) FG Development Stock
(d) State Government Development Stock
(e) Local Government/Municipal Stock
(f) Mortgage Based Financial Tools
(g) Derivative Financial Tools
(2) The availability of these financial instruments will help deepen the market and attract additional investment funds from both local and foreign private investors.
(3) Create the required choice for firms who want to raise money from the market.
(4) Create a viable, productive sector of the economy. This research is concerned with the slow growth in the productive sector of the economy and how the capital market can be used to facilitate growth, especially in the productive sectors of brewing, food and beverages, as well as the construction sectors. The problem of the research is to find how best to analyze, examine and proffer solutions to the factors that affect the capital market, especially market instability, low productive sector activities, and declining market capitalization. These factors of market instability, low productive sector activities and declining market capitalization impact sometimes positively or negatively on the economic development of Nigeria. Also, to investigate the impact of inadequate operational tools in the Nigerian Capital Market, inadequate savings for investment, lack of market transparency, political and economic instability, as well as infrastructure deficiency, is to be undertaken.
Objective Of Study
The following are primary objective of this study:
Research Question
The following research question guides this study:
ABSTRACT
The study examined prison administration and crime prevention in Nigeria using Nigerian Prison Service, Agodi G...
ABSTRACT
This study was carried out on the effect of covid-19 pandemic on sporting activities. To achie...
BACKGROUND
Shipping has long been considered as a powerful accelerator for socioeconomic growth. Adams...
Abstract
The ethanol extract of root of Chrozophora senegalensis use in ethanomedicine to treat diarrhea, rheumatism, taeniasis, stomach...
Abstract
The main objective of the study is to empirically evaluate the critical roles of small businesses in economic...
ABSTRACT
Starch modifications are a means of altering the structure and affecting the hydrogen bonding in a controllable manner to enhanc...
ABSTRACT
CHATTY was created with the mind set to not just be another chat application but to add a level of clean UI (user interface) or...
Abstract
This study is carried out on the marginalization of women in politics and its effect on the development of wome...
ABSTRACT
This project work titled ‘’the management of insurance company towards th...
Abstract
This study was an investigation into the consequences of office technologies in secretarial education curriculu...