CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The stock market commonly known as the stock exchange is encompassed in the capital market. It is the very core of this market because most activates clamed out revolve around it. It can be described as a place where savers and investors are brought together to trade on securities as a sources of finance it has basically, the same function as any other financial institution which comprises. The financial system the stock exchange plays an important role 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 live exiting in the country. How does this need relate to the stock exchange and its activate? Has it been successful in this particular area? It should be borne in mind though that the economy of any country is a very complex issue especially in the case of Nigeria. Since its establishment which way necessary due to some pressing factors, the economy has under gone a lot of drastic changes
1.2 STATEMENT OF THE PROBLEM
The importance to a developed economy can never be over – emphasized. An efficient stock market goes a long way in carrying out this function. This fact not withstanding, we find out that a lot of people in this country are not even aware of the stock market, its function and have it can facilitate the development of the economy. In an under – developed economy like, the need for this market is paramount if the economy is expect 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 expected. The development of the economy cannot be ensured if the market itself is not well developed. This problem of not checked will not only defeat the goals of the market but also remove any existing. Confidence in the market as an outlet for finance. This is a major set back in the development of the economy.