THE IMPORTANCE OF THE NIGERIAN CAPITAL MARKET TO BUSINESS ORGANIZATIONS.
(A CASE STUDY OF PORTACOURT STOCK EXCHANGE)
ABSTRACT
The Nigerian capital market was established to perform certain functions, which are paramount to the development and growth of the economy. This includes the accumulation of capital from diveresed fund serves and make such available to users of funds.
The purpose of this study was to determine the extent to which the development of business organization, to establish the importance of the capital market in servicing the banking and manufacturing sector of business.
Hypothesis formulate in this regard are:
Ho1     The Nigerian capital market is of no importance to business organization
The Chi-square was used to test the hypothesis.
Questionnaire were distributed.
 The study made the following recommendation
1)         Increased awareness should be create especially in rural areas.
2)         Compensation of trade transactions should be encouraged.
3)         More couraces taking capital market in the tartaric institution          should be encouraged.
4.         Investigation needs to be carried out on the influences of the          Nigerian capital market on business organization.
                        CHAPTER ONE
1.1       PROBLEM INDETIFICATION AND PURPOSE OF STUDY
            In this research work, the researcher intends to study the     importance of the Nigerian capital market to business organisatio    of this country. Apart from its fund mobilization function, it thus   performs intermediacy role by making it possible for those who   have surplus funds to be able to loan it out to those in need of it for             productive purposes (Orji, 2000)..
            The purpose of the study is stated as follows:
1.         To determine the extent to which the Nigerian capital market          contributes to the development of business organizations
2.         To establish the importance of the capital market in semicing the     banking an manufacturing sectors of business.
3.         to make recommendation on how to improve the operation s of the             market which will aid in the development of business organizations          and the economy as a whole.
1.2       RATIONALE OF THE STUDY
            I decided to write on this topic because of the following reasons;
1.         I have special interest in the Nigerian capital market business of its             significant role in the banking industry. For example, so many         banks are running to the Nigerian capital market to raise funds, so   that they can meat up with the new capital base of N25 billion. As     a banker, I am supposed to know how the banks raise their funds.
2.         I hope that through this project work other people who ar not aware           of the importance of the Nigerian capital market will get to know          about it after reading my work.
 
.3         SIGNIFICANCE OF THE STUDY
            This study will enlighten the business proprietor on how to raise      the much needed capital through the Nigerian capital market to      improve his business performance.
            This study will also enlighten the general public and investors on    the need to invest in the Nigerian capital market.
            It will also enable the students to read or study more about the       Nigerian Capital market.
            The study wll also enable other researchers to carryout more            research on the topic
            Also the authorities who are already conscious of the problems of   the stock exchange who benefit from the recommendations of this        work for improvement.
1.4       DEFINTION OF TERMS
1.         CAPITAL MARKET:  It is a market where long-term goods are    obtained or where long term functional assets such as debenture,        stock, shares are bought and sold.
2.         STOCK MARKET:  is an institution in a boarding conceived         capital market, consisting of arrangement of mechanisms for      raising capital though the initial issue of securities.
3.         PRIMARY MARKET: is a market where new securities are traded            for the first time by the issuing co-operation.
4.         SECOUNDARY MARKET: is a market where second hand o       previously issued securities are braded.
5.         PRICE EARNING RATION: This represents the current investors            re willing to pay for each naira of the forms earning.
6.         PRICE EARNING INDEX: Means compilation showing average current market value of common stock compared with their   average market value at an earlier base period.
7.         CALL OVER: is a method adopted by the Nigerian stock dealers and any interested dealer indicates his interest by going into bidding.