It can be described as a place where savers and investors are brought together to trade on securities and sources of finance. It has basically, the same functions as any other financially institution which comprises the financial system.

The stock exchange plays an important role in the development of our economy. A developed financial system they say is a developed economy. The primary aim of every nation I believe is to improve the standard of living existing in the country. How does this need relate to the stock exchange and its activities? Has it been successful in this particular area? It should be borne in mind through that the economy of any country is a very complex issue especially in the case of Nigeria. Since its establishment which was necessary due to same pressing factors, the economy has undergone a lot of drastic changes.

As will be discussed later, the impact of the stock exchange in the business world of Nigeria has in some way benefited the country. Whether it has done so successfully or not will be determined not just over its short history but also in the future years to come.

Although other means of raising funds exists, the stock exchange no doubt adds more sophistication and thus efficiency which is necessary for every developing country in this case Nigeria.

The project has been embarked on mainly to give a general idea on the life of the exchange and its operation. It also hopes to point out certain deficiencies associated with it and the viewpoint of different individuals, firms and companies on it. In doing so, this project has been divided into different chapters, each discussing a vital point or aspect.

This first chapter centers mainly on the purpose of this study, it’s objectives, significance and limitations associated with it. It will help to highlight certain problems relating to the exchange and its use.

The next chapter is just a simple discussion the stock exchange. It is the literature review of this project. It tells us what different author’s have said in relation tot his topic and also their point of view on this topic.

Chapter 3 is a brief narration on how the research on this project has been carried out, the difficulties encountered and what type of facts and sampling I have based this project on.

The last two chapters on the other hand is detailed analysis on this project. It is the main basis on which this project falls on. Date analyzed here are data got from the general public form this I was able to draw some conclusions and deduce certain facts which have all been summarized in the last chapter.

Various means have been embarked on to make this project possible. It has been worthwhile through because as a friend put it, no person can hope to carry out an effective, influential and flourishing business if he is not well versed on the financial market.

PROBLEM STATEMENT

This importance of a developed economy, can never be over

emphasized. An efficient stock market goes a long way in carrying out this functions.

This fact is not withstanding, we fined out that a lot of people in this country are not even aware of the stock market, it’s functions and how it can facilitate the development of the economy. In an under – developed economy like ours, the need for this market is paramount of the economy is expected to be improved upon.

Another problem associated with the stock exchange is that of development. Trading on the exchange has not been as extensive as was expect. The development of the economy cannot be ensured of the market itself is not only developed. In this problem if it is not checked well, not only defeat the goals of the market as an outlet for finance. This is a major set-back in the development of the economy.

It is obvious that the establishment of the stock exchange is at stake and if nothing is done now, it could gradually be eroded.

1.2 OBJECTIVES OF THE STUDY

The objective of this project is to present a through study of