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The stock commonly known as the stock exchange is

encompassed in the capital .

        It can be described as a place where savers and investors are brought together to trade on securities and sources of finance.  It has basically, the same functions as any other financially institution which comprises the financial system.

        The stock exchange plays an important in the development of our economy.  A developed financial system they say is a developed economy.  The primary aim of every nation I believe is to improve the standard of living existing in the country.  How does this need relate to the stock exchange and its activities? Has it been successful in this particular area? It should be borne in mind through that the economy of any country is a very complex issue especially in the case of Nigeria.  Since its establishment which was necessary due to same pressing factors, the economy has undergone a lot of drastic changes.

        As will be discussed later, the impact of the stock exchange in the business world of Nigeria has in some way benefited the country.  Whether it has done so successfully or not will be determined not just over its short history but also in the future s to come.

        Although other means of raising funds exists, the stock exchange no doubt adds more sophistication and thus efficiency which is necessary for every developing country in this case Nigeria.

        The project has been embarked on mainly to give a general idea on the life of the exchange and its operation.  It also hopes to point out certain deficiencies associated with it and the viewpoint of different individuals, firms and companies on it.  In doing so, this project has been divided into different chapters, each discussing a vital point or aspect.

        This first chapter centers mainly on the purpose of this study, it’s objectives, significance and limitations associated with it.  It will help to highlight certain problems relating to the exchange and its use.

        The next chapter is just a simple discussion the stock exchange.  It is the literature review of this project.  It tells us what different author’s have said in relation tot his topic and also their point of view on this topic.

        Chapter 3 is a brief narration on how the research on this project has been carried out, the difficulties encountered and what type of facts and sampling I have based this project on.

        The last two chapters on the other hand is detailed analysis on this project.  It is the main basis on which this project falls on.  Date analyzed here  are data got from the general public form this I was able to draw some conclusions and deduce certain facts which have all been summarized in the last chapter.

        Various means have been embarked on to make this project possible.  It has been worthwhile through because as a friend put it, no person can hope to carry out an effective, influential and flourishing business if he is not well versed on the financial .


This importance of a developed economy, can never be over

emphasized.  An efficient stock goes a long way in carrying out this functions.

This fact is not withstanding, we fined out that  a lot of people in this country are not even aware of the stock , it’s functions and how it can facilitate the development of the economy.  In an under – developed economy like ours, the need for this is paramount of the economy is expected to be improved upon.

        Another problem associated with the stock exchange is that of development.  Trading on the exchange has not been as extensive as was expect.  The development of the economy cannot be ensured of the itself is not only developed.  In this problem if it is not checked well, not only defeat the goals of the as an outlet for finance.  This is a major set-back in the development of the economy.

It is obvious that the establishment of the stock exchange is at stake and if nothing is done now, it could gradually be eroded.


The objective of this project is to present a through study of

the stock exchange and to throw more light on it’s importance in the business world.

The main objective thus are:

–              To bring closer to have the reality of the stock by:

showing it’s development it’s functions and importance; it’s impact in the business world and the development of the economy

–              To highlight the deficiencies of the

–              To find possible solutions to these deficiencies.

These objectives I believe should serve to inform fellows Nigerian’s on the activists and importance of thestock .  Also to draw the attention of fellow users of the to the deficiencies that exist there and possible solutions so as to improve on the deficiencies.

1.3        OF THE STUDY

This study is important in the sense that it has to do with the

economy of this country.

An under-developed stock we said means an under-developed economy, thus how standard of loving.  Nigeria’s being conservative people, they need to  be encouraged to embark on any venture.  The stock being relatively new when compared to the money , which is also an outlet foe rising funds but short-term ones, confidence in it has to be gradually developed if it is hoped for the to be a success and for it to carry out it’s functions well.  As this study goes a long way to throw more light on this and its’ function, it is hoped that an awareness will be instilled in it’s readers and the suggestions put towards considered.


This project centers on the stock exchange ().  A very

thoroughly research on this study is not very possible in that interviews and questionnaires have to be limited since only a little sector of the population patronize this .

        Distance from source of information is another problem.  The stock exchange is only situated in certain places and so any vital information necessary has to be got on a secondary basis if it is not possible to travel around.

        Time factor is also another notable factor.  Nobody seems to have time to even fill questionnaires due to pressing engagements.  Also combining this project with my other academic work has been very trying and at times interview have been put of due to the work-load I have and the time available to do it.

        Another important factor also arises during the collection of data. You find out that people are not ready to talk on any issue which involved. They tend to feel that any information given will implicate them in some ways, so most individuals try as possible to give a rosy picture of the entire procedure even through things that do not happen that way.


This study will test the following hypothesis.

Main – hypothesis:  Use of stock exchange is not extensive due to ignorance especially on the part of individuals.

Sub – hypothesis:

under-development of this confidence in the ’s future development

questions which will serve as a guide for the collection data are:

–              Are you aware of the stock exchange?

–              Where do you raise your funds?

–              What are it’s functions and importance?

–              Do you patronize this and why?

–              What are it’s deficiencies?

–              How can they be over some?

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