THE STRUCTURE, OPERATION AND IMPACT OF NIGERIAN STOCK EXCHANGE ON NIGERIAN ECONOMY

TABLE OF CONTENTS

Declaration.. iii

Certification.. iv

Dedication.. v

Acknowledgementvi

Table of Contents. viii

Abstractxi

CHAPTER ONE.. 1

1.0 Introduction.. 1

1.1 Statement of Research Problem.. 4

1.2 Objectives of the Study. 5

1.3 Purpose of the Study. 5

1.4 Scope of the Study. 6

1.5 Significance of the Study. 6

1.6 Methodology and Research Design.. 7

1.7 Statement of Hypothesis. 7

1.8 Limitation of the Study. 8

1.9 Plan of Study. 8

1.10 Definition of Terms. 9

CHAPTER TWO.. 13

2.0 Literature Review.. 13

2.1 The History of the Nigerian Stock Exchange. 13

2.2 Members of Nigerian Stock Exchange. 16

2.3 Structure of the Nigerian Stock Exchange. 17

2.3.1 The Council of the Stock Exchange. 18

2.3.2 President of Council19

2.3.3 Director General19

2.4 Objectives of Nigerian Stock Exchange. 21

2.5 Functions of the Nigerian Stock Exchange. 21

2.6 Dealing on the Exchange. 23

2.6.1 Floor Procedure. 24

2.7 Listing Requirements on the Stock Exchange. 26

2.8 Classification of Stock Exchange Market28

2.9 Transaction Procedures. 32

2.10 Trading Procedure under the call over System.. 33

2.11 Market Instrument Used to Conduct Operation.. 35

2.12 Speculators at the Stock Exchange. 38

2.13 Impact and Achievement of Nigerian Stock Exchange on Economy. 39

2.14 Problems Hindering the Operation of Stock Exchange. 41

2.15 Factors that Determine Rises/ Decreases in Share Price. 43

2. 16 The Securities and Exchange Commission SEC44

2.17 The Central Securities Clearing System CSCS Limited. 47

2.18 Trading Procedure in Shares on the Exchange after the Introduction of CSCS Limited 49

2.19 Steps Involved in buying and Selling of Shares on the Exchange after the introduction of CSCS 50

2.20 Automated Trading System.. 52

2.21 Overview of Nigerian Stock Exchange. 53

CHAPTER THREE.. 54

3.0 Research Methodology. 54

3.1 Introduction.. 54

3.2 The Research Process. 54

3.3 Source of Data Collection.. 55

3.4 Data Analysis Techniques. 57

3.5 Restatement of Hypothesis. 58

CHAPTER FOUR.. 59

4.0 Data Presentation, Analysis and Interpretation.. 59

4.1 Presentation of Data. 59

4.2 Data Analysis and Interpretation.. 60

4.3 Correlation between Dependent and Independent Variables. 64

4.4 Testing of Hypothesis. 66

CHAPTER FIVE.. 70

5.0 Summary, Conclusion and Recommendation.. 70

5.1 Summary. 70

5.2 Conclusion.. 71

5.3 Recommendation.. 71

5.4 Area of further Research.. 74

Bibliography. 75

ABSTRACT

This project focused on the structure, operation and impact of Nigerian stock exchange on Nigerian economy. The Nigerian financial market ware considered. The market which consists of the money market and capital market. The Nigerian capital market was examined together with the roles and reasons for its establishment. The Nigerian Stock Exchange was traced to the origin. The meaning, history and organization of Nigerian Stock Exchange was undertaken, together the membership of Nigerian Stock Exchange which includes the foundation members, the ordinary members and the Dealing members. In addition, the structure of the Nigerian Stock Exchange which deals with the general administration of the operations in the Stock Exchange market was also examined. It also covers the objectives, functions, the Dealing procedure, the listing requirements of Nigerian Stock Exchange and the classification of Stock Exchange Market. Moreover, the operation of the Nigerian Stock Exchange, the speculators at the Stock Exchange and the impact and achievement of the Nigerian Stock Exchange on economy were analyzed and provided for in the project. The Nigerian Security and Exchange Commission was considered as only regulatory body in the activities of Nigerian Stock Exchange. The Central Securities Clearing System CSCS was examined. The various method of collecting data related to the topic were discussed to ensure the empirical validity of the finding. The data collected were analysed and interpreted with the presentation in tabular form. The summary, conclusion and recommendation of the write up were concisely stated in lucid language for the consumption of the attentive public.