Topic: Stock Exchange
Content:
- Meaning of Stock Exchange
- Importance of Stock Exchange
- Functions of Stock Exchange
- Organizational Set-Up
- Meaning of securities
- Types of securities
- Factors affecting prices of securities
- Speculators at the stock exchange.
Stock Exchange: This is a specialized market for the buying and selling of securities, these securities are shares, stock, bonds, debentures, etc; which represent ownership interest in business.
It is an organized market where investors can buy and sell existing securities. It is an essential part of the capital market. The market deals in old existing shares only, it serves as a source of raising capital as well as a venue for financial investment.
The Nigeria stock exchange market is in Lagos and has branches in Abuja, Portharcourt; it was established in 1960 through the act of parliament. Some of the companies quoted in the market are: Nigeria Breweries, First Bank PLC, Union Bank PLC, Nestle Food Nigeria PLC. etc.
The need for stock exchange arises from two main factor, firstly, many people desire to save their excess money after meeting their financial basic needs, instead of spending this money extravagantly, they can decide to invest the money in company shares or government bond where the money will yield more income. The second factor is from the desire of companies and even the government to raise money for business expansion and development of project.
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