Business Financing Through the Nigerian Capital Markets

Business Financing Through the Nigerian Capital Markets.

ABSTRACT

The role of the capital market in business financing through the capital market can not be overemphasized. Finance is the livewire of every business organization because the success or otherwise of all business entities are very much dependent on its capital and how the capital is raised.

Business finance could be raised by either short term or long term financing instruments. Business finance could also be obtained internally or through external sources.

Long term financing instruments such as equity, bonds and derivatives are the major instruments traded on the floor of an exchange.

The NSE performs a number of functions which include creating opportunities for long term borrowing, registration and or quotation of companies’ shares for trading on the floor of the exchange,

Regulating the activities of operators on the floor of the exchange, promotion of increased participation by the public in the private sector of the economy and the provision of appropriate machinery to facilitate further offering of stocks, shares and other securities to the public among others.

The encouragement of the public to raise funds for business enterprises is a function worthy of mention. Surprisingly few companies have made use of the facilities provided by the NSE.

INTRODUCTION

Much has been written about the Nigerian stock exchange (NSE) regarding its operations, functions, potentials and most especially, its role in business financing.

Surprisingly few companies have made use of the facilities provided by the stock exchange in financing their business operations.

Most Nigerian businessmen are either ignorant or reluctant to tap the enormous potentials offered by the stock exchange in providing the most needed investment capital.

It is against this background that a comprehensive study that will critically analyze the role of the Nigerian stock exchange with particular reference to business financing, which forms the subject matter of this project.

For convenience, this project has been divided into five chapters. Chapter one consists of introduction which deals with an overview of the subject matter, other parts of this chapter include the statement of the problem,

objectives and significance of the study, its scope and limitation as well as definition of terms and the Research methodology used.

REFERENCES

Nwanco G.O (1991). Money and Capital Markets in Nigeria today, University of Lagos press

Okereke O.N (2006). “Stock Market Performance in 2006” Being a paper presented at 2006 NSE Annual Performance Review January, 2008.

Pandy I.M (1985). Financial Management. Vani Educational Publishers

Schurtz R.G and Schurtz R.E (1972). Basic Financial Management Text Problems and Cases 2nd Edition. Text Educational Publishers.

Uzor M.A (2005). How to buy and sell shares in Nigeria: a practical Guide. Data Quarterly Vol. 1 No. 7 July, 2006

Zenith Bank Plc (2006): “Driving Wealth through Reforms” Zenith Economic Quarterly Vol. 1 No. 7 July, 2006

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