NIGERIA STOCK
EXCHANGE(GROUP 8)
INTRODUCTI
ON
- The Nigerian Stock Exchange (NSE) is a platform
where stocks and other securities are bought and
sold in Nigeria.
- It is a regulated financial market that allows
•
companies to raise capital by listing their shares,
while also offering investors the opportunity to buy
and sell these shares.
- The NSE helps in promoting economic growth by
providing an efficient and accessible market for
trading financial assets in Nigeria.
- The NSE is a stock exchange where stocks,bonds,
and other securities are traded in Nigeria.
- The NSE helps in promoting economic
growth by providing a
transparent,effecient, and accessible
market for trading finacial assets in
Nigeria.
- It is a member of the World
Federation of Exchange(WFE) and other
international organisations.
- The NSE collaborates with global
financial bodies to promote foreign
investments and portfolio
MARKET
STRUCTURES
- The NSE operates a multi-tiered market
structure, which has many boards and we
shall delve into 3 .
- The 1st is the main board. This is the
primary listing for well estbalished
companies . It is only suitable for large cap
companies with a solid track record.
Examples of listed companies are the
Dangote Cement and the Nestle’ Nigeria.
- The 2nd is the growth board. It was
introduced to support fast growing
comapnies especially in tech and
- The 3rd is the premium board. It is
designed for the largest and most
liquid companies that adhere to the
hughest corporate governance
standards.
- It requires companies to have a
minimum market capitalization and
strong regulatory compliance.
- It attracts both domestic and
international investors.
REGULATORY
FRAMEWORK
- The NSE operates under a well defined
regulatory framework that ensures investor
protection and investor trading.
- The NSE is regulated by the Securities and
Exchange Commision(SEC) of Nigeria, which
oversees capital market activities to ensure
transparency and effeciency.
- The Companies and Allied Matters Act
(CAMA) and the Investment and Securities
Act(ISA) also provide legal backing for its
operations.
next we will talk about the roles and
- Securities and Exchange
Commission(SEC): Regulates and
supervises the capital market,
ensuring compliancee with laws and
investor protection
- Nigerian Stock Exchange(NSE):
Facilitates securities trading and
ensures market integrity.
INVESTOR
PROTECTION
Investor protection is a crucial aspect of the
Nigerian capital market, with various measures
in place.
MEASURES TO PROTECT INVESTORS:
- investor education: NSE conducts training
and awareness programs.
- enforcement of rules: SEC ensures that listed
companies and brokers adhere to market
regulations.
- whistleblower protection: Investors can
report fraud or unethical practices
anonymously.
- The Investor Protection Fund(IPF)
compensates investors in case of
broker insolvency.
- The National Protection Fund(NIPF)
further strengthens investor
confidence.
- Dispute Resolution Mechanisms:
Investors can resolve complaints
through the SEC’s dispute resolution
committee.
INVESTMENT
OPPORTUNITIES AND
PRODUCTS
With Investment opprtunities we will deal with
the Equities, Real Estate Investment
Trusts(REITs) and lastly Exchange Traded
Funds(ETFs).
- With Equities companies list their shares on
the NSE to raise capital, providing investors
with ownership and voting rights
- With (REITs) , investors can participate in real
estate ventures without direct property
ownership.
- With (ETFs), these funds track specific indices,
allowing investors to diversify portfolios.
With Investment Products we will deal with
Stocks and Rights issues.
- Dealing with stocks, investors can buy and
sell shares of companies.
- Dealing with Rights issues, existing
shareholders are offered additional shares
at a discounted price.
CHALLENGES FACING
THE
NSE
- Economic Instability. Heavily reliant on oil
exports it makes it vulnerable to global oil
price fluctuations.
- Regulatory environment. The NSE operates
under strict regulations set by the Securities
and Exchange Commission(SEC)
- Liquidity issues. Many stocks on the NSE
experience low trading volumes. This lack of
liquidity can make it difficult for investors to
execute large transactions without affecting
stock prices.
- Market manipulation. Instances of
insider trading and market manipulation
have been reported,eroding trust in the
market. Regulatory bodies have made
efforts to address these issues, but
challenges persist.
- Investor education. A significant portion
of the Nigerian population remains
unaware of stock market operations. This
lack of investor education limits
participation and contributes to market
volatility.
FUTURE
INITIATIVES AND
GROWTH
OPPRTUNITIES
- The NGE offers diverse investment
opportunities across different asset
classes.
- Investors can trade various securities,
including equities, fixed income
instruments, and derivatives. The market
is open to retail and institutional
investors, both domestic and foreign.
CONCLUSION.
..
MUTSA MUONDE 240112
THE LIBERTY DAKA 240289
EN MUNASHE MUNHUPEDZI 240082
TINAYE MUNIKWA 240482
D TANYARADZWA SONGORE
NATALIA TANYA 240089
CHIDO MUSARURWA
CRYSTALANGEL MUJAWO 240075
LUKE CHAMA SIWALE 230290
GARY MALEMIA 230370
