Security Market as a Source of Finance for the Public and Private Sectors in Nigeria

Security Market as a Source of Finance for the Public and Private Sectors in Nigeria

Project / Seminar Material
Reference ID: PS-12172-TM

DEDICATION

This research material titled “Security Market as a Source of Finance for the Public and Private Sectors in Nigeria” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Finance, Book Authors and Profound Scholars of existing or related project material on “Security Market as a Source of Finance for the Public and Private Sectors in Nigeria” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

ABSTRACT

In most developing the establishment and efficient operation of security market has come to be accepted as an important pre- requisite for rapid economic development.

The study is carried out through the use of library (textbook), newspapers and journals.

In chapter I (one) is the background of the study (introduction), statement of the problems, objective of the study, and significance of the study, scope and limitation of the study, and reference.

In chapter ii (two) shows the overview of security market the study critically examines the extent to which security market has contributed to the economic development of the country, government intervention in form of policies and regulatory controls have contributed immensely to the development and expansion of the market.

In chapter iii (three) is the research design and methodology, method of data collection, secondary data location of data and tools of analysis.

In chapter iv (four) is the summary of findings and the general benefit of security market. Chapter v (five) is the recommendation and conclusion, bibliography.

Security Market as a Source of Finance for the Public and Private Sectors in Nigeria

CHAPTER ONE

1.1 Introduction

Security market or financial market in a broad sense is an institutions arrangement that facilitates the intermediation of funds in an economy. Financial intermediation means the mobilization of financial resources from surplus − spending unity and channeling of such funds to deficit − spending units for productive investment and generation of assets or securities exchange such as bonds and shares, which is approved by the exchange authorities. And as a market it acts as a meeting place or where sellers and buyers of financial resources come into contact.

It is also a financial market in which shares, bond debentures stock, treasury bill, treasury certificate, call money and other financial securities are exchanged provide a means through which firms and government raised long-term fund for business expansion and development projects through investors who own shares in business, firm for the eventual economic benefit of all members of all the society.

This market is segmented into two. The money market, which deals in short term funds, and the capital market, which is mainly for long-term, loan able funds. The reason for the distinction between money market and capital market is based on the degrees of liquidity of the instruments traded in. it can be sub-divided into primary market and secondary market. The primary market is that segment of the capital market where financial securities are first floated for subscription. Put differently, it is a market for the quotations of new issues of securities. Secondary market is a market where financial securities that have been fully subscribed and paid for, are offered for sale. In order words it is a market for the transfer of ownership of shares, debenture stock and bonds. In as much as the secondary market dose not has effect on the creation or allocation or newly created wealth (new issues), it still supports the primary market.

The market performs an economic function by facilitating the transfer of real economic resources from the lender to the borrowers. By the inducement of interest income, the market facilitates the transfer of purchasing power from the lenders to the investors who wish to exercise demand over real resources. As a real resources flow from the lenders to borrowers the production of goods and services is enhanced and consequently the welfare of the people is improved.

1.2 Problem Identification

The major features of any financial market is its ability to provide the credit needs of both the private and public sectors which result to economic growth and development. The fundament characteristic of a sound financial system is the ability to finance credit needs which contributed to economic growth without injury to stability.

Though the market have provided the facilities for retaining funds in the economy but still lacks the in-depth and breadth.

The major reasons are:

  1. The number of individual investors are not still impressive because they do not consider financial market as a source of financing their organization
  2. The attitude of investors in buying and holding of securities also contributed to its scarcity in supply irrespective of the establishment of the second tier security market.
  3. The stringent rules and regulation imposed by the securities exchange commission for companies to be quoted in the stock exchange.
…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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