INVESTORS AND THE NIGERIA FINANCIAL MARKET

ABSTRACT

This work studied an existing investors and Nigeria Financial Market.

In undertaking this research, three research objectives were pursued.  Primary and Secondary Sources of data were used, the data collected were then presented, analyzed and interpreted by the use of tabular method of data presentation.

The primary source contained direct account of event to phenomena such accounts are obtained from observation, interviews and questionnaire source at the various locations of the data.  The data are made up of information that was generated specifically for this study so as to gain our insight into the research topic and confer as much authenticity as possible to this task.

The secondary data were in existence before the need to conduct this research topic. The sources of data collected under this category include: Newspapers and magazine, Journals, textbooks.  This collection helped to reveal the transaction or relationship of the financial market and investors.

From the response gotten from the sampled frame in the questionnaires one will clearly see that both companies are a million miles away form the risk seeking class of investors.  Some of the investors prefer the risk aversion class while other prefer the risk neutralizing classing.  But from the Hypotheses test, it could be inferred that there is no significant relationship between the risk class, an investor belong and the profitability return on investment,

The study also revealed that the company has been able to turn up to the expectation of the people.

CHAPTER ONE

INTRODUCTION

Most business organizations are financed by debt capital and equity contribution of its shareholders.  The company raises its equity capital by new share issues and by means of retained earnings which are plough back for future dividends and earning growths.  New shares may be offered for sales to members of the public who are invited to subscribe or to existing share holders who are invited to apply for additional shares.

The financial market is that market where companies or firms raises needed funds for their on-going operations as well as for long term capital expenditures.

These firms, may also temporarily place its surplus in quick yielding short term investments until its final disposition.  This market is the mechanism that exist in order to facilitate the exchange of financial assets.  The market functions effectively with the activities of financial intermediaries that issues financial claims against themselves.  This means that they sell financial assets representing claims on themselves in return for cash.

In disclosing the operations of the market, it is pertinent to reveal how an investor should go about making decisions on marketable securities in which to invest, how extensive the investment should be and when the investment should be made, this research work is aimed at revealing the secrets of sound investment.  Investors and members of the financial market will find this work very useful.

1.2     STATEMENT OF THE PROBLEM

The joy that is associated with successful investment is always applauded with great financial returns.  Investors are generally confronted with the problem of returns.  There is always differences in their expected return and what turns out to be the actual return in investments held by them.

Hence, within the confines of the Nigerian financial market, the following difficulties arises.

How are securities bought and sold?

How do investors take decisions about marketable securities in which to invest?

How should seasoned Investors go about minimizing the problems of risk held in their investment?

All these issues are to be addressed in the plight of this work.