“STOCK EXCHANGE IN DEVELOPING ECONOMY”(ROLE AND SETBACKS)
ABSTRACT
Stock Exchange market are established to make profit, through of shares, bonds, debentures and assessment of these provisions are against the background of this paper that these provisions are not adequate for the promotion of stock exchange in Nigeria.
TABLE OF CONTENT
CHAPTER ONE
1.0         INTRODUCTION                                                     
1.1       BACKGROUND OF THE STUDY            
1.2         STATEMENT OF PROBLEM                    
1.3         OBJECTIVES OF STUDY                         
1.4         SIGNIFICANCE OF STUDY                                 
1.5         SCOPE AND LIMITATION OF THE STUDY
1.6         DEFINITION OF TERMS               
CHAPTER TWO      
2.0         RELATED LITERATURE REVIEW                     
2.1       HISTORICAL BACKGROUND OF STOCK        
            EXCHANGE IN OPERATION                               
2.2         MEMBERSHIP OF STOCK EXCHANGE           
2.3         ROLES OF THE STOCK EXCHANGE               
2.4         PROBLEMS OF STOCK EXCHANGE   
2.5         IMPORTANCE OF STOCK EXCHANGE
CHAPTER THREE
3.0         SUMMARY OF THE FINDINGS, CONCLUSION
AND RECOMMENDATION
3.1       CONCLUSION                                                        
3.2         RECOMMENDATION                                            
BIBLIOGRAPHY                                                     
CHAPTER ONE
1.0         INTRODUCTION
Before I start, I will like to plan the term stock exchange. Stock exchange is a market which facilities buying and selling of share, stock, bonds, debentures and other securities. It is essentially a secondary market for buying and selling of already existing securities.
1.1       BACKGROUND OF THE STUDY
The Nigerian stock exchange started as Lagos stock exchange, which was established by the Lagos stock exchange act of 1961. it was registered on 15th  September 1960 and began its operation on 5th June 1961.
            Its’ establishment was a follow up to the report of committee appointed to advise them an ways and means of fostering a share market in Nigeria. This committee was set up in 1958 under professor R.H Barback by the federal government to consider ways and means of promoting a stock exchange market in Nigeria at its inceptions. The Lagos stock exchange was heavily subsided by the federal government institutions. It was transformed into the Nigerian stock exchange in 1977. the Nigerian stock exchange has branches in Kaduna, Port – Harcourt, Ibadan and Onitsha.
1.2         STATEMENT OF PROBLEM
Like most development market, the problem facing the capital market in Nigeria are as follows:
INADEQUATE SUPPLY OF SECURITIES.
Perhaps the most serious problem facing the capital Market is inadequate supply of securities. Most companies, especially the indigenous ones area still reluctant to raise fund. This now result not supplying enough securities to the maintaining of the public.
IGNORANCE: the level of public awareness as to the benefits derivable from the operations of the capital market is very low due to ignorance among the members of the capital market.
INFRASTRUCTURE:  transactions after take weeks or months before they are finished. Therefore, resulting to drag and delay of issuing securities to the public.
PARTICPATION:  the Nigerian stock exchange is not fully developed, all dealings are handled by brokers. So the jobber do not participate in the market.
1.3         OBJECTIVES OF STUDY
From all that has been written above, it is the aim of this study to facilitates buying and selling of share, stocks, bonds, debentures and other securities to the government and to other members of the public willing to buy.    
            It is also the aim of the stock exchange to provide forum for determination of security prices and raising funds through listed securities.
1.4         SIGNIFICANCE OF STUDY
The stock exchange enables securities to be valued at any particular place or time. Stock exchange protects the holders of securities from fraud. It also inspects applications for new quotations.
It provides a market where those wishing to invest can buy securities and those wishing to reclaim an invested securities can sell such securities on terms that are agreeable to both parties.
It sometimes arranges for a new issue of shares to be made. Example, when a private company wants to convert to a public company.
Stock exchange market deals in securities of government and commercial undertakings all over the world. Therefore with its regular contacts with principal stock exchange in all parts of the world, the stock exchange market is the best exchange of world market.
1.5         DEFINITION OF TERMS
STOCK EXCHANGE: this is a market which facilitates buying and selling of shares, stocks, bonds, debentures and other securities. It is also a market where old and existing shares are bought and sold.
THE BROKER: the broker is an agent to his client who would mainly be private individuals and corporate firms. He is an intermediary between his client and the principal (the Jobber). He receives a commission called BROKERAGE for the service rendered.
THE JOBBER:  the jobber is the principal in the sense that he buys and sells shares on behalf of himself. He deals directly with the broker who act as an agent for their clients. The jobber often quotes two prices for the broker.
ORDINARY MEMBERS:  ordinary members (individuals or institute) of the Nigerian stock exchange is a member who in accordance with the articles of the exchange taken up 5 share of N20 each of the issued share capital of the exchange and has been admitted into the register of members. An ordinary member does not receive dividend from the stock exchange.
DEALING MEMBERSHIP: a dealing member of the stock exchange is a person or an institution who in addition of being an ordinary member, is licensed by the council to trade in stocks, shares and bonds on the stock market, and accepts to be bound by the rules and regulations of the stock exchange.
THE NEW ISSUES MARKET:  this is also called the primary market in the sense that, it is concerned with the offering of new issues of securities in the exchange market.
 SHARES: this is the interest which a shareholder has in a company, which is measured by the sum of money. A share is a unit of a company’s share capital.
DEBENTURE: a debenture is a certificate given by a business corporation as a receipt for money heat at a fixed rate of interest until the principal is repaid.
EQUITY HOLDERS: equity holders are the investors who buy the ordinary (common) shares of a company. Equity holders or share holders are the part – owner of the company.