Some of the strength of the securities market which makes them the focal point of the shifting emphasis is their ability to: 1.     mobilize long term savings for financing long tenure investments; 2.     provide risk capital (equity) to entrepreneurs; 3.     encourage broader ownership of firms; and.

the impact of stock market performance on the growth of nigerian economy ABSTRACT This study is motivated primarily by the need to enhance capital accumulation from the stock market, being the long term end of the financial system. Background of the study Every company operates within the internal and external environments of business. Mobilization of resources for national development has long been the central focus of development. On the other hand, other studies have examined the impact of stock prices on macroeconomics indicators. TRADE OPENNESS AND OUTPUT GROWTH IN NIGERIA: AN ECONOMETRIC ANALYSIS (1970-2007), 53. Primarily, a stock market is the place where companies can raise money to make their businesses bigger and better. The scope of the study is based on the Nigerian stock exchange from the key sectors of the economy. There are a lot of studies about the connection between stock prices fluctuations and economic growth as well as other economic variables which have detected that changes in stock prices reflect real economic situation. Osuala E.C. SUMMARY, CONCLUSION AND POLICY RECOMMENDATION. A CRITICAL ANALYSIS OF THE CONTRIBUTIONS OF COMMERCIAL BANKS TO THE ECONOMIC GROWTH OF NIGERIA, 41. International Press. THE OIL SECTOR VIS-A-VIS THE AGRICULTURAL SECTOR: THE NIGERIA EXPERIENCE (1981-2007), 34. A growing body of literature has affirmed the importance of financial system to economic growth. York: Oxford University Press.

(1989). When the issuing firm sells its shares to the investors, the transaction is said to have taken place in the primary market but when already issued shares of firms are traded among investors the transaction is said to have taken place in the secondary market. Demirguc-Kunt and Levine (1996a), Singh (1997), and Levine and Zervos (1998) find that stock market development is playing an important role in predicting future economic growth.

This study appraises the performance of the stock exchange in consonance with its impact on the success or failure of the Nigerian economy.

Thus stock markets can play a role in inducing economic growth in less developed country like Nigeria by channeling investment where it needed from public. Shahbaz and his friends (2008) argue that stock market development is an important wheel for economic growth as there is a long-run relationship between stock market development and economic growth.

Stock market development has assumed a developmental role in global economics and finance because of their impact they have exerted in corporate finance and economic activity. The result of the student - t test revealed that the coefficient for market capitalization, investment rate and real exchange rate are all statistical significant at 5 percent level of significance.

The study further added that developed economies have highly sophisticated financial institutions. According to the results of these investigations share prices fluctuations play a role in directing economic activities in the medium and long term. H0: there is no significant impact of Stock Market performance on economic growth. The market serves a broad range of clientele including different levels of government, corporate bodies, and individuals within and outside the country. H0: changes in investment links have no significant impact on the growth of Nigeria’s stock Market … Recent research has begun to focus on the linkages between the stock markets and economic development.

AN ASSESSMENT OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIAN BANKS ( A CASE STUDY OF DIAMOND BANK), 33.

Beck, T., Levine, R., & Loayza, N. (2000). the composition of the capital of the firms) and efficient and competitive financial system.

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING NIGERIA BANKS (A CASE STUDY OF DIAMOND BANK, UYO), 9. Thus, the development of an active market for stocks could provide an alternative to the banking system for both savers and users of funds.

Time-Varying world market

The stock market encourages savings by providing households with an additional instrument which may better meet their risk preferences and liquidity needs.

However, the specific objectives include: 1. 1.6      SCOPE AND LIMITATIONS OF THE STUDY. H0: there is no significant impact of Stock Market performance on economic growth.

Provision of alternative sources of finance other than taxation and foreign loan to fund public projects. Whether this effect is positive or negative is a research problem to be solved. THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010). Apart from these primary benefits, a developed securities market in the sense of efficient financial intermediation further brings additional gains to the economy. Financial assets may take different forms ranging from the long-term government bonds to ordinary shares of various companies. FINANCE CHALLENGES OF MANUFACTURING COMPANIES IN NIGERIA AND THEIR CONTRIBUTIONS TO THE ECONOMIC GROWTH OF NIGERIA, 42. Stock prices reflect the expectation of public towards the future economic activity.

This study appraises the performance of the stock exchange in consonance with its impact on the success or failure of the Nigerian economy. Atje, R., & Jovanovic, B.

Economists have been well aware...Continue reading », IMPACT OF MACROECONOMICS VARIABLES ON FIRMS’ PERFORMANCE IN NIGERIA, CHAPTER ONE INTRODUCTION 1.1. For instance, Pardy (1992) has noted that even in less developed countries capital markets are able to mobilize domestic savings and able to allocate funds more efficiently. THE IMPACT OF COMMERCIAL BANK CREDIT ON AGRICULTURAL OUTPUT IN NIGERIA, 50. Debt securities include federal government development stock (GDS), industrial loans, preference stocks, bonds e.t.c, while equity securities mainly concern ordinary stocks which impose higher liabilities on the holders.

Companies which go public are subject to continuous cost of providing financial information, transferring shares, paying dividends, and other aspects of shareholder relations.

This is precisely what an efficient stock market does to the economy (Berthelemy and Vardoulakis, 1996).

An organized securities market requires a securities exchange, a securities commission or other regulatory agency, and intermediaries such as dealers, brokers, securities analysts, etc. al. 50, pp. Portfolio investment in the capital market is the acquisition of financial assets (which includes stock, bonds, deposits, and currencies) from one country in another country. In the past decade, the world stock markets surged, and emerging markets accounted for a large amount of this boom (Demirguc-Kunt and Levine (1996a). General economic and specific capital markets reforms, including privatization of state-owned enterprises, financial liberalization, and an improved institutional framework for investors, have further encouraged capital markets development.

Primarily, a stock market is the place where companies can raise money to make their businesses bigger and better. (1995).

To this end, various papers, research works, seminars, e.t.c.

A CRITICAL ANALYSIS OF OF THE IMPACT OF POPULATION GROWTH ON THE ECONOMY OF NIGERIA, 43. Some of the strength of the securities market which makes them the focal point of the shifting emphasis is their ability to: Apart from these primary benefits, a developed securities market in the sense of efficient financial intermediation further brings additional gains to the economy.

A CRITICAL ASSESSMENT OF THE DETERMINANTS OF INVESTMENT IN NIGERIA, 40. stocks provide an incentive to save and invest; and. New

At the same time, the stock market gives investors an opportunity to invest in these companies and benefit from any profit they can make. A STUDY INTO THE DETERMINANTS OF PRODUCTION OF COCOA IN NIGERIA, 25.

Stock market is a very important constituent of capital market where the shares of various firms are traded Trading of the shares may take place in two different forms of stock market. This work represents an attempt to close the gap between these different literatures, by examining the impact of stock market performance on the growth of Nigeria economy. Financial markets, especially stock markets, have grown considerably in developed and developing countries over the last two decades. The capital market, as a strong avenue for wealth creation, plays a key role in economic growth and development. In other words, the stock market is forward-looking and stock prices reflect anticipations about future economic activity. CHAPTER ONE INTRODUCTION 1.1.

FOREIGN EXCHANGE RISK MANAGEMENT IN NIGERIA ECONOMY AND ITS IMPACT ON PROFITS OF BANKS, 29. Due to the fact that there are no viable equity markets, the capital structure of firms are generally characterized by heavy reliance on international finance and bank borrowings which tend to raise debt/ equity ratios. This is precisely what an efficient stock market does to the economy (Berthelemy and Vardoulakis, 1996). Recent research has begun to focus on the linkages between the stock markets and economic development. Gerald (2006) states that stock market development is important because financial intermediation supports the investment process by mobilizing household and foreign savings for investment by firms.

1, pp. Companies raise money by selling shares or stocks to investors.

London: Longman

THE IMPACT OF MONETARY POLICY ON FOREIGN TRADE IN NIGERIA, 2. For instance, Pardy (1992) has noted that even in less developed countries capital markets are able to mobilize domestic savings and able to allocate funds more efficiently. This study is an investigation of the impact of Nigeria stock exchange performance on the economic growth of Nigeria. Stock market development has an important role to play in economic development. A stock market can also be called a capital or securities market as it encompasses the stock exchange, the branches, and the stockbrokers.

NATIONAL SAVINGS AND ECONOMIC GROWTH IN NIGERIA (1970-2007), 44. Companies raise money by selling shares or stocks to investors. A viable equity market can serve to make the financial system more competitive and efficient.