Functions of Nigerian Stock Exchange

Functions of the Nigerian Stock Exchange. The Nigerian Stock Exchange (NSE) was established in the year 1960 as the Lagos Stock Exchange but was renamed as the Nigerian Stock Exchange in the year 1977 shorten for NSE. With the increasing and ever-growing number of investors in the NSE, it is undoubtedly one of the important contributors to the Nigerian Economy. The Nigerian stock exchange in simple terms is a marketplace as it is a place where people buy stock and sell stocks.


Functions of Nigerian Stock Exchange

  • The NSE provides an open forum for people to buy and sell securities.
  • The NSE encourages people to save.
  • They provide opportunities for businesses to raise funds.
  • The Stock help to check liquidity in the country’s economy and this is done by easing buying and selling of all types of securities.
  • The NSE acts as a medium for dissemination of information to investors and industrialists.
  • They protect the public from sharp practice ad shady dealings by providing guiding rules.
  • The NSE facilitate dealing in government-owned securities.

Facts About Nigerian Stock Exchange

The idea of trading in the NSE is to buy stocks when their prices are low and sell them when the stocks appreciate considerably. For the investor to succeed in the Nigerian stock exchange, quality information is key because you would need to know which stock to buy and when to sell such stock. A stock trader would need to consider a number of factors, like the history of the stock, the quality, and cost, its perception. All this can go a long way in determining which stock can be bought or sold off at any particular time.

Functions of Nigerian Stock Exchange

As of June 28, 2016, the NSE has 180 listed companies with a total market capitalization of about N10.16 trillion and is the third largest in Africa in terms of market capitalization. The NSE creates Medium in which investors can use disposable income to buy products (stocks and securities) with the belief that the product will rise in value in the future. All activities and transactions are regulated by the Securities and Exchange Commission { SEC }. This regulatory body performs the function of Surveillance over the activities of the NSE. They help prevent a breach of market rules and also help detect and deter unfair manipulations and trading practices in the NSE.

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