Both market and bank-based financial systems have their own comparative advantages. They do not exist in communist or socialist countries for they have no business doing there. The technology innovation in United States made them the biggest economy in the world. Also, those who have fund surplus to the immediate requirements and wish. Aside the social and institutional factors inhibiting the process of economic development in Nigeria, the bottleneck created by the dearth of finance to the economy constitutes a major setback to its development. It also attracts new entrepreneurs who may have brilliant business ideas but are inhibited for lack of capital. An active capital market through its price mechanism allocates the scarce financial resources to the most productive uses at a low cost.
I would like to take the opportunity today to talk about the role of financial markets for economic growth. The Dutch were the first to procure funds from public; they raised capital to trade and maintain battle ships in order to protect their ships from the pirates. Finally as a result of the above findings, the following recommendations were made, government should make concerted effort at ensuring the development of capital market either by creating more funds or establishing more branches of the capital market in almost every state of the federation so that the public, government agencies, states, and local governments can easily finance their projects through the market with ease. This is because when policy makers embark on bad policies the equity and bond prices tend to fall. Every business concern requires two types of finance. Price stability The interaction between financial markets, economic growth and monetary policy is by no means a new issue for central bankers.
It enables them to benefit from economic growth and wealth distribution, and provides avenues for investment opportunities that encourage a thrift culture critical in increasing domestic savings and investment ratios that are essential for rapid industrialization. It is only through financial system, more financial institutions will contribute a part of their investable funds for the promotion of new ventures. In order to preserve the level-playing field, all segments of the financial industry would have to be supervised under the aegis of a common supervisor. It is a market whereby existing instrument already outstanding are transferred. The government on its part, can raise adequate resources to meet its financial commitments so that economic development is not hampered.
The specified shares are more attractive than non-specified shares. Several obstacles have been identified in the recent Report of the Committee of Wise Men, chaired by Alexandre Lamfalussy. We have tried our level best to put meticulous effort for prepare this assignment. A dynamic is capable of attracting funds both from domestic and abroad. It is the right of ownership to a company.
Though the scope of study will be limited to the capital market, it is hoped that the exploration of this market will provide a broad view of the operations of the capital market. The banking sector also has an essential role to play with respect to the allocation of funds to the most profitable investment opportunities. Balami Abstract Capital market is defined as the market where medium and long terms finance can be raised Akingbohungbe, 1996. It facilitates inflows of foreign financial resources into the domestic economy. A developed and vibrant Capital Market will immensely contribute towards speedy economic growth and development. To critically examine the relationship between stock market capitalization rate and interest rate ii.
Finally, British collaborated with the Dutch and became an expert in leveraging Capital Markets that led to the rise of the British Empire. Emphases have been placed on indicators of stock market size, liquidity and growth over a period of thirty years; together with their combined effects on the rate of economic growth and development within Nigeria context. I shall first consider whether the design of the financial system matters for economic growth. In addition, the government did set the rates for lending to specified sector of the economy with a view to encouraging or discouraging lending to these sectors. It encourages researchers, Investigators academics and professional on the need fro more research work and for more studies on those issue.
As a result of their skills and education, productivity level would increase because educated workers would work at a faster pace than less educated workers Human capital refers to the knowledge and skills embodied in people. Not many of the small scale business or family-owned business, state and local governments are aware or properly counseled by the issuing houses about the procedural formalities of actualizing their full involvement in the capital market activities. Thus, the precious foreign exchange is earned by the country because of the presence of financial system. It encourages researchers, Investigators academics and professional on the need fro more research work and for more studies on those issue. .
. The complete project work would be ma. The unorganised sector mainly includes the indigenous bankers and moneylenders while the organised sectors consist of banking system, stock market and term lending institutions. The industries should be given suitable protection through the financial system so that their credit requirements will be met even during the difficult period. The government can also regulate the financial system through suitable legislation so that unwanted or speculative transactions could be avoided. Lets look at some of the importance of capital market in economy. Financial system helps in development of Trade The financial system helps in the promotion of both domestic and foreign trade.
The national central banks of the euro area have a comparative advantage in this field owing to their responsibilities over payment and settlement systems, their traditional focus on systemic risk and their role as components of the Eurosystem. Various financial services such as , , merchant banking, etc. Nowadays, emerging capital markets seems to be more and more attractive and accessible for foreign portfolio investments. However, linking the paucity m capital market instruments as well as expansion of capital market finances to increase in real productive investment and development, it was discovered that very little is achieved in this respect. The story of Capital Markets in India dates back to the 18 th century when trading shares of East India commenced. Due to its varied roles, this research work will attempt to briefly give an overview and history of Nigerian capital market and discuss the role of Nigerian capital market in economic development which is the concern of this study. These markets also help to increase savings and investment, which are essential for economic development.
Financial system helps in fiscal discipline and control of economy It is through the financial system, that the government can create a congenial business atmosphere so that neither too much of inflation nor depression is experienced. It is a market in which money is lent for periods longer than a year. The… An overview of Bangladesh Capital Market: Fraudulent Practice An overview of Bangladesh Capital Market: Fraudulent Practice Prepared for Barrister M. . The supply of funds mainly comes from individuals, institutions, banks and industrial financial institutions. Despite these important functions, capital markets are often poorly understood. ~ The supply for funds comes from individual savers, corporate savings, banks, insurance companies, specialized financial institutions and government.