TABLE OF CONTENT
Title page i
Table of content vi
- Background of the Study
- Stock Market Regulation
- Statement of the Problem
- Research of the Problem
- Hypothesis of the Study
- Objectives of the Study
- Justification of the Study
- Scope of the Study
- Definitions of the Terms
2.1 The Concert of Globalization
2.2 The Nigeria Capital Market
2.3.0 The Structure of the Nigeria Capital Market
2.3.1 The Primary Market
2.3.2 The Secondary Market
2.4 Capital Market as a Vehicle of Development
2.5.0 Financing Options in the Nigeria Capital Market
2.5.1 Advantages and Disadvantages of Capital Market
2.6 Role of the Stock Exchange in the Nigeria Economy
2.7 Process of Globalization
2.8 Evolution of Globalization
2.9 Globalization of Financial Market
2.10 International Portfolio Diversification
2.11 Portfolio Equity Flows
2.12 Impact of Globalization and Formation
2.13 Nigeria in the Capital Economy
3.1 Historical Background of the Lagos Stock Exchange
3.2 Types and Sources of Data
3.2.1 Variable to be Measured
3.2.2 Model and its Assumption
3.3 Data Analysis Technique
Data Presentation, Analysis and Interpretation
4.2 Descriptions of Data
4.3 Presentations of Data
4.4 Test of Hypothesis
4.5 Summary of Relevant Result for Testing the Hypothesis
4.6 Interpretation of Analysis
Summary, Conclusion and Recommendation
5.1 Summary of Findings
- BACKGROUND OF THE STUDY
It may not be wrong to say that the world as a community is increasing getting smaller, and the world business environment I arguably influenced by this trend.
Recently, the activities and transactions on Nigeria capital market were mainly dominant by various forms of restrictive regulation. Though the banking and security agents are both financial institutions but they have different regulatory authorities.
The Nigeria capital market is one of the places for the long term found. It uses instruments like bound, mortgages, term loan, stocks, ordinary and preference share and debentures for its operation (Olowe, 1998). The capital market is an important place in most economy of the world. A highly developed business enterprise economy.
The Nigeria capital market as a formal institution came into existence in 1961 with the ester price economy.
The Nigeria capital market as a formal institution came into existence in 1961 with establishment of the Lagos stock exchange (LSE). The Lagos stock exchange becomes Nigeria stock exchange (NSE) in 1977. Today, the Nigeria stock exchange has many functional trading floors in different part of the country.
Other major institutions that make up the Nigeria capital market include the Securities and Exchange Commission (SEC), which is the regulatory constitution.
In the capital market, issuing houses and brokerage houses shares registrars and unit trust.
The capital market is divided into two:
- The primary market
- The secondary market
Other market operation includes stock brokers, dealers, investors, investment advances, bank and the registrars.
The establishment of Nigeria capital market and other market operators is as a result of obvious areas of globalization that Nigeria cannot afford to be left behind. Globalization penalizes economies that adopt obnoxious macro economics and sectional policies, while it enhances the growth potentials of those that apply sound policies.
Globalization is the rapid integration of trade relations productive and investment decision across the globe by economic agents who employ and more investment capital and technology around to take advantages of environment where their competitive edge can manifest in high retune (Regumamu 1999).
Lubbers (1997) defines globalization as a process in which geographic distance become factors of diminishing distance become factors of diminishing importance and the establishment and maintenance of across border economic political and socio-cultural relations. The process has reduced the world economy to a global village. The phenomenon has been achieved primarily by a world wide wave of liberalization that is the tariff and non-tariff barriers to international trade, encouragement of foreign investment and the deregulation of interest rate and the successful transaction of the stock exchange from the manual call over trading system on April 27 1997. Both the level of foreign ownership in Nigeria companies and flow of foreign capital are now restricted. One of the culminations of these effort was the first foreign list on the Johannes bury stork exchange. It was the first a bank through on internationalization of the stock market, while enhancing opportunities for portfolio diversification by domestic investors.
Another significant development of the stock exchange was the linking up the rented electronic contributor system (R.E.C.S) for the online disseminations of the stock market information trading statistic and all share index and company investment (Nigeria Stock Exchange N.S.C 2000).
However, the Nigeria stock exchange has established an internet system called CAPNET which enable investors to have direct access information on the nation stoke market. CAPNET collect and stores information on daily trading activities, stock market statistics as well as corporate information on various securities quoted on the exchange, which could be accessed by all subscribers. The website permit brokers and investors to monitor the marketed on real time bases enables investors decisions markers to enter global from remote location any where in the world. Thus will enable the stock holders of the exchange to add value to the different decision they make in their respective capacities such as quoted companies. Stockbrokers, issuing houses investors and capital market operation due to the timely availability of information about the stock exchange (NSE 2000)
1.2 STOCK MARKET REGULATION
Transaction in stock market are guided by the following legislation among others are :-
Investment and security Decree (NO.45) 1995 companies and Allied matter Acct 1990 as amended foreign exchange (miscellaneous provision) Decree 1995 Nigeria investment promotion commission Decree 1995
1.3 STATEMENT OF THE PROBLEM
Despite the benefits accrue to an economy that participate effectively on globalization, unhealthy they complication could also arise.
Some people would think that the benefit of globalization favour certain regions of the world especially those that are already established in the international trade market, not knowledge that policies made to promote economics with globalization could be unbeneficial such policies are not sound or properly carried out.
Due to this, the various policies employed from time to time to shift the economy have not been able in good measure contributes to the economic development.