The Role of the Nigeria Capital Market as a Funding Mechanism for Economic Growth and Sustainable Development
Emma Ik Okoye
Nnamdi Azikiwe University - Department of Accountancy
Journal of Global Accounting, Vol. 2, No. 2, December 2006
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.
Number of Pages in PDF File: 14
Keywords: capital market, funding mechanism, economy, growth, developmentAccepted Paper Series
Date posted: April 7, 2011
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