The Role of the Nigeria Capital Market as a Funding Mechanism for Economic Growth and Sustainable Development
Journal of Global Accounting, Vol. 2, No. 2, 2006
14 Pages Posted: 5 Apr 2011
There are 2 versions of this paper
The Role of the Nigeria Capital Market as a Funding Mechanism for Economic Growth and Sustainable Development
The Role of the Nigeria Capital Market as a Funding Mechanism for Economic Growth and Sustainable Development
Date Written: March, 23 2011
Abstract
The Capital Market is the engine of growth in modern economies. A right legal and regulatory framework under a free economy with free enterprise is the spring board for development of this market which is the long term end of the financial market. The absence of a Capital Market will hamper industrial growth. The trading value of a Stock Market is usually indicative of its level of activity, that is the rate at which securities are bought and sold as well as its liquidity which is the ease at which securities can be converted to cash. There has been 'enhanced trading over the past decade at the Nigeria Capital Market. Listing on the market has also been on the increase in recent time which has spurred now issue-activities. Many bottleneck factors that have hampered steady and orderly development of the Nigerian Stock Exchange have been improved on by the Nigerian Government. A lot of long term funding has been raised from the market for economic growth and development. By channeling these long-term funds into financing of investments, socio-economic welfare has been improved and growth enhanced. There is however no room for complacency as lot more still need be done to keep pace with international stock markets.
Keywords: Capital market, economic growth, sustainable development
Suggested Citation: Suggested Citation