Ifeanyi O. Nwanna
Being a Seminar Paper Presented to the Department of Banking And Finance, Faculty Of Management Sciences, Nnamdi Azikiwe University, Awka in partial fulfillment of the requirements for the award of Doctor of Philosophy(Ph.D) in Banking and Finance
Course Code: Fin 703- Theory and Practice of Money and Capital Markets
SUPERVISOR: Prof. B.C Osisioma
This study attempts to place in the Nigerian perspective for the period of 1989 and 2008, the role of the stock market in the supply of new funds to the economy. The volatility and risk return implication for the Nigerian Stock Exchange as international portfolio investors withdraw their funds in the face of the global financial meltdown was considered. With the help of the Minitab software and gathering some notable stock market development indicators such as market capitalization, NSE-All share index, New Issues, Consumer Price Index, Inflation rate. Dollar-Naira Exchange rates and GDP figures the relationship between stock market development and New Issues was found to be positive and significant. This finding contrasts with previous studies in this area The costs of raising new funds in the Nigerian Stock market was found to be 6.25% of total amount raised, which is above international best practice.. This study therefore suggests that for a significant increase in the supply of new issues that are necessary for growth in the real sector of the Nigerian economy to be achieved, the focus of policy should be on measures that promote growth and sustain development in the stock market.
The stock market is an economic institution, which promotes efficiency in capital formation and allocation.
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