PROBLEM INDETIFICATION AND PURPOSE OF STUDY

In this research work, the researcher intends to study the importance of the Nigerian capital market to business organisatio of this country. Apart from its fund mobilization function, it thus performs intermediacy role by making it possible for those who have surplus funds to be able to loan it out to those in need of it for productive purposes (Orji, 2000)..

The purpose of the study is stated as follows:

1. To determine the extent to which the Nigerian capital market contributes to the development of business organizations

2. To establish the importance of the capital market in semicing the banking an manufacturing sectors of business.
3. to make recommendation on how to improve the operation s of the market which will aid in the development of business organizations and the economy as a whole.

1.2 RATIONALE OF THE STUDY
I decided to write on this topic because of the following reasons;
1. I have special interest in the Nigerian capital market business of its significant role in the banking industry. For example, so many banks are running to the Nigerian capital market to raise funds, so that they can meat up with the new capital base of N25 billion. As a banker, I am supposed to know how the banks raise their funds.

2. I hope that through this project work other people who ar not aware of the importance of the Nigerian capital market will get to know about it after reading my work.

1.3 SIGNIFICANCE OF THE STUDY
This study will enlighten the business proprietor on how to raise the much needed capital through the Nigerian capital market to improve his business performance.

This study will also enlighten the general public and investors on the need to invest in the Nigerian capital market.

It will also enable the students to read or study more about the Nigerian Capital market.

The study will also enable other researchers to carryout more research on the topic

Also the authorities who are already conscious of the problems of the stock exchange who benefit from the recommendations of this work for improvement.

1.4 DEFINTION OF TERMS
1. CAPITAL MARKET: It is a market where long-term goods are obtained or where long term functional assets such as debenture, stock, shares are bought and sold.
2. STOCK MARKET: is an institution in a boarding conceived capital market, consisting of arrangement of mechanisms for raising capital though the initial issue of securities.

3. PRIMARY MARKET: is a market where new securities are traded for the first time by the issuing co-operation.

4. SECOUNDARY MARKET: is a market where second hand o previously issued securities are braded.

5. PRICE EARNING RATION: This represents the current investors are willing to pay for each naira of the forms earning.

6. PRICE EARNING INDEX: Means compilation showing average current market value of common stock compared with their average market value at an earlier base period.

7. CALL OVER: is a method adopted by the Nigerian stock dealers and any interested dealer indicates his interest by going into bidding.