Thesis Abstract

Abstract
The stock exchange market plays a crucial role in the global economy by facilitating the trading of securities between investors. This research project aimed to explore the challenges and prospects facing the stock exchange market in the current economic landscape. The study utilized a combination of qualitative and quantitative research methods to gather data from various sources, including market reports, academic journals, and expert interviews. The findings of the research revealed several challenges that the stock exchange market is currently facing. These challenges include market volatility, regulatory changes, technological disruptions, and geopolitical uncertainties. Market volatility, driven by factors such as economic indicators, investor sentiment, and global events, poses a significant risk to investors and can lead to sharp fluctuations in stock prices. Regulatory changes, aimed at enhancing market transparency and investor protection, can create compliance burdens for market participants and affect trading activities. Technological disruptions, such as the rise of algorithmic trading and high-frequency trading, have transformed the way securities are traded, introducing new risks and opportunities for market participants. Geopolitical uncertainties, including trade tensions, political instability, and global health crises, can create market instability and impact investor confidence. Addressing these challenges requires proactive risk management strategies, adaptive regulatory frameworks, and robust technological infrastructure. Despite these challenges, the stock exchange market also presents several prospects for growth and innovation. The increasing integration of global markets, fueled by advancements in technology and communication, offers new opportunities for investors to diversify their portfolios and access a wider range of investment options. The emergence of sustainable finance and impact investing has gained traction in the market, reflecting a growing interest in environmental, social, and governance (ESG) considerations among investors. Furthermore, the development of financial technologies (FinTech) and blockchain-based solutions has the potential to streamline trading processes, reduce transaction costs, and enhance market efficiency. These innovations can promote market liquidity, improve price discovery mechanisms, and democratize access to capital markets. Embracing these prospects requires market participants to adapt to changing market dynamics, leverage new technologies, and foster a culture of innovation and collaboration. In conclusion, the stock exchange market faces various challenges in the current economic landscape, including market volatility, regulatory changes, technological disruptions, and geopolitical uncertainties. However, these challenges are accompanied by prospects for growth and innovation, driven by global market integration, sustainable finance trends, and technological advancements. By navigating these challenges and embracing emerging prospects, the stock exchange market can continue to play a vital role in the global economy and support sustainable development goals.

Thesis Overview

The Nigeria Stock Exchange (NSE) is the centre point of the Nigeria Capital Market, while the Securities and Exchange Commission (SEC) serves as the apex regulatory body. There are other regulatory bodies of the Nigerian Capital Market. They are the Federal Ministry of Finance, the Central Bank of Nigeria (CBN) and the Merchant Banks. The Nigerian Stock Exchange provides a mechanism for mobilising private and public savings and makes such funds available for productive purposes. There is what appears to be the general opinion that, a vibrant Capital Market contributes immensely to the economic growth and development of any nation. Nigerian Stock Exchange market has a role to play through a periodic performance evaluation of quoted companies for adequate and efficient generation of income. When income increases, there will be enough to plough back into the business by way of retained profit for business expansion; expansion will equally lead to employment of more hands, thereby reducing the unemployment rate. Also high profit will lead to increased tax liability for infrastructural development. The study attempts to analyse and measure the rate of the economic development of the country through quoted company’s level of capitalisation, value indices of common stocks, growth in the number of listed securities and Gross Domestic Product. The study will also analyse the operation of the Nigerian Stock Exchange, its challenges and prospects, the functions and dealers in the Nigeria Stock Exchange market. The study suggests that, the system should be liberalised so that expected result of capital reform would not be distorted by inefficiencies in the financial sector.