THE ROLE OF CAPITAL MARKET IN THE INDUSTRIALIZATION OF A COUNTRY  
( CASE STUDY OF NIGERIA  )
CHAPTER    ONE
  The capital market is the market for dealings,( that is lending and borrowing ) In long –term loan able fund. The market is a source from which industries obtain its capital for establishment expansion and modernization and from which the government borrows on long term basis for development purpose it offers access to varieties of various instrument that enable economic agent to pool, price and exchange risks through assets with affricative fields liquidity and risk characteristics. It encourages savings in financial form. This is very important for government and other institutions in need of long-term funds and for suppliers of long-term fund who because of the native of their liabilities undertake to maintain parts of their assets in the relatively liquid form (Ekeizie 1997)
According to Kanu N.O.N (2004) capital market refers to that market for the mobilization of medium and long term fund. From the surplus units for allocation to the deficits units of the economy the market provide opportunities for the insurance and resale’s of government securities co-operate funds, stocks, shares, and mortgage loans.
A broad definition of the term capital market according to Alile (1986)
 The entire financial systems, commercial banks and other financial institution providing  short term and long term to finance both consumption and investment while an intermediate definition would include only those institution     which are concaves with providing with long term , the anew definition of capital market rulers to it as involving the problem and prospects of  equity investment
This relates to the issue  an d market of share bonds debentures and other long term using the services of brokers dealers ad under writer
                                  A sketch of a capital market
                                             The presidency
                                     The federal ministry of finance
                                   Securities and exchange commission
                                                 Capital market
                                           Nigeria stock  exchange
                                   Stock brokers and issuing house
                                               Instrument
1.1 It is important we know that the capital market was not in existence before the independent in 1960, rather what was in existence was a financial system . the absence of a capital  market within that period s hindered economic development the won exchange of this market to invest them in the country meant that Nigeria who had surplus fids had no such market to invest them in the country as a result of this   they repatriated such funds for investment overseas I hand on thus resulting to export of capital which would have use in the economic development of Nigeria in addition it resulted to lack market    
Where Nigeria industrialist and business men course raise capital for the operation and constitution for  their business on the other side of the government there was o effective tool for monetary police and control  with the above situation there is no need to provide a local government market for the borrowing and handing of long term funds for  the economic development of Nigeria to achieve this objective the central bank of Nigeria went into operation on 1st of july 1959 in that same year the Nigeria stock exchange was established and the actual operation started in1961 with in the listed on the exchange the most of the listed companies have foreign/multinational affiliation and represent across section of the economy ranging from agriculture through manufacturing to service
Following the sevegelation f the capital market in 1993, the federal government I 1995 international the capital market foreigners  can now participate  In the Nigeria capital market both as operators and investors with this the stock exchange has linked up with the roufes
Electronic contributors system which is a form of information communication system that assist online global business nation of stock market information like trading statistics all share index e.t.c all these have contributed to the development of the economy
1.2 STATEMENT OF THE PROBLEM
Although  the capital market has contributed significantly to the growth and industrialization  of the country  economy  certain problems still contain its operational option they include
INFRASTRUCTURAL INADEQUTIES :this has resulted in salary in  effecting transaction between issuance houses brokers  sealers registrars investors and their  banks the service discouraged many investors who some times view with their registrar and brokers when there   certificates are under levees or proceeds of share sold not . also infrastructural institution insulate  many investors especially those in the rural areas from participating effectively in international trading there by hindering development since the rural traders are band of the necessary securities needed to participate in international trading
Generally ignorance also on the part on most members of the Nigerian public so as to the meaning of shares and stock s as well as thebenefit frommarket operations
Reluctance of the Nigeria business men to go to the public for the fear of losing control of family business
Macro economy instabilities and high cost of raising fung in the market.
Polities instability which makesreturns and premium uncertain and thereby discourage prospective investors both local and foreign
 1.3 OBJECTIVE OF THE STUDY
Having the above problem in mind as militating against the industrialization  of capital market vie stock exchange market , the purpose of this study is to determine
1. The contribution of  the capital market to economic growth
2. The contribution of capital market in national development
3. To enumerate the usefulness of Nigeria stock market in the industrialization  of national economy.
1.4 RESEARCH QUESTIONS
1 .does lack of public awareness militate against realization of the potentials of the stock market in founds mobilization
2.  Does the capital market play any role in the industrialization of a country?
3. Political instability influence the industrialization  of a country capital market?
1.5 SCOPE OF THE STUDY
This research work revolves on the Nigeria stock exchange and how it aids the capital market in a industrialization in a country  like ours. It is important to note that the capital market in not a single entity rather it in a network of specialized financial institution that in various ways bring together suppliers and users of capital which be fully emphasized in this study it well also examine the various regulatory bodies of a capital market especially in Nigeria stock exchange .
Thus, the scope will cover the Nigeria stock market its operation and impact in the economy generally.
1.6 SIGNIFICANCE OF THE STUDY
This study will be of important to individual private and public companies, financial institutions, government parastatals, as it will enable them to understand the role which capital market plays in a developing economy. The role that stock exchange plays in mobilizing funds, encourages the investors to invest in to the stock market with the full assurance that their investment are intact.
1.7 LIMITATION OF THE STUDY
This research faced some constraints while carrying it out such hindrance include.
Time this which was a major problem was adequately not managed by the researcher these is not enough time for the research to get the project time get it approved and coupled with exam and assignment in school.
Lack of material ; the uncooperative of most people working in the library they offices where the research needed to get materialwhile other will change one can get what he wants
Finance ; before now our project use to be a joint project of a group of four –ten people but now it has to be on individual student to finance hinders the project in one way or the other Either by transportation to where to get the material or where to obtain the necessary information.
 Some terms or concepts have various meaning industrialization in who or how it is used. The one of thus study are used in the following context.
 STOCK MARKET: it is used interchangeable with the capital market which in an integral part of the capital financial system where money securities are bought and sold.
SHARE HOLDERS:  a share holder is one who hard a share certificate who has legal title to shares is also called or referred to as stock holders.
SHARE INDEX: it is made up of a number of bonds stock or share selected from a list of various trades or business with their market price added together.
 SPECULATION: it is the buying and selling of goods with object of gaining from difference in price.
: one who speculates on the stock exchange by subscribing to a new issue with the hope of selling his allotment   at a profit?
:  an individual who sell securities has not want to hope that they can be repurchase at a profit before slivery has to be made.
COMMON STOCK: is a term for equity or common stock
: an intermediary  who buys or sells share  on behalf of a client.
: they refers to various adopted as evidence of clan in the market.
PRIAMRY MARKET: it is where securities are offered for sale in the public from the issuer for the first time.
SECONDARY MARKET: it is where people or investors can buy or sell previously securities and get their money back for attentive uses.