EFFECTIVE MARKET CAPITALIZATION AND THE NIGERIA STOCK MARKET GROWTH

EFFECTIVE MARKET CAPITALIZATION AND THE NIGERIA STOCK MARKET GROWTH (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

The capital market is one the compartment of financial system that promote savings and investment in an economy, by providing the means of gathering saving and making them available to borrower.

The aim of this research work is to examine the effective market capitalization and the Nigeria stock market growth between the periods of 1983-2010. The data used for the research work were both secondary and primary data. Secondary data was gathered from Nigeria stock market between on various issues between the periods of 1983-2010 while the primary data was source through questionnaire given to some selected staff of stock exchange market.

The analysis of data collected was base on the Ordinary Least Square the method which was used to test hypothesis one (effective capitalization and Nigeria stock market growth).  Chi- square was used to test hypothesis two (registered small and medium scale is better than unregistered ones base on the questionnaire administered. The empirical results revealed that effective market capitalization enhanced the Nigeria stock market growth and registered small and medium scale enterprises is better off than unregistered one in term in an effective market environment.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

The capital market is one of the compartments financial system that promotes savings and investment in an economy, by providing the means of gathering savings and making them available to borrowers. The other compartment of the financial system is the money market, which is being controlled by the Central Bank of Nigeria (CBN).

The stock Exchange is one of the key institutions of the capital market, it is a network of individuals, institutions and instruments involved in the efficient channeling or funds fromthe surplus to the deficit economic units (Alile, 1999).

Stock Exchange is any things at the same time. It is a place where securities such as bonds, stocks and shares of different shades and types are traded openly, and where one can purchase or sell any of such securities relatively easily.

EFFECTIVE MARKET CAPITALIZATION AND THE NIGERIA STOCK MARKET GROWTH (ECONOMICS PROJECT TOPICS AND MATERIALS)