Impact of Industrial Development on Nigeria Stock Market

There are millions of ways to make money in the world. Every day millions of people invest their money in the New York Stock Exchange (NYSE). On average, there are five trillion dollars in stocks traded daily (Picardo).This is one of the reasons America has the largest economy in the world. The stock market creates jobs for thousands of people and has done nothing but show a steady increase since the day it opened (Knight). Wall Street symbolizes the way America’s economy is a free market. The stock market affects almost everybody, not only in America but all over the planet.

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.

One of the most important things to our economy is the stock exchange. Investors spend billions of dollars on the stock trade. Thousands of the world's largest companies on the world's many stock exchanges. Numerous times throughout the history of stock exchanges a market crash, which can sometimes only last a few days, can ruin the whole economy for long periods of time. Without stock exchanges in the world, many big companies may not be as advanced as they are today.

4. What are the factors of production? How can economies grow when one or more of the factors is weak? There are

In every country of the world, exchange rate level is the paramount target of economic policy targeting. In other words, exchange rate policy should be geared towards the attainment of long-term equilibrium rate, so as to achieve certain macro-economic objectives e.g. balance of payments equilibrium, through proper management of the Nigerian exchange rate policy. The country started operating the floating exchange rate system in 1986 after the introduction of SAP. It was expected that the country experience development but the reverse was the case because the country suffered consistent hopeless development situation as her naira depreciates often against other foreign currencies, especially the dollars which was universally accepted as the global medium of exchange. Before the floating system was introduced, $1=NO.89 but after that in 1966 we have $1=N22.05 and even today we have $1=N150.7 .This is quite disheartening, regardless of the effort of the government of Nigeria through the activities of the regulatory body such as the establishment of second tier foreign exchange market (SFEM) in 1986 and interbank foreign exchange market (IFEM) in 1989 and currently the foreign exchange market (AFEM) in 1995.

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

Keynes observes some other features of this situation within the stock market. This type of liquidity not only leads to future fluctuations in physical asset investment, but also creates fluctuations of the daily profit on investments which further influences the market. One of the key themes Keynes observes is that there is plenty of

5. What are the factors of production? How can economies grow when one or more of the factors is weak?

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of

Many studies have demonstrated the idea that institutions are the main factor of economic development because empirical evidence points to strong institutions being able to determine large growth of GDP per capita. Although the characteristics of strong institutions can be described as the potential fundamental cause of economic growth, the effects of geography and materials available to different certain regions have a huge hand in properly developing a society economically and allowing for further growth. The resources of the countries heavily depend on the raw materials available to each region and the kinds of animals they are able to domesticate. This is where the argument circulates around in which geography is a large determinant of whether a civilization or society can prosper in a certain area or not.

There are several economic, nationalistic, military, and humanitarian reasons that contributed to the growth of

The London Stock Exchange lists the FTSE 100 which is a share index of stocks of 100 companies showing the highest market capitalisation. This will be completed by discussing the movement of the company’s share during the time period. The companies will also be compared to the movement of the shares against each other, against FTSE 100 and against its industry sector. The records and comparisons will be all in context of Stock Market Efficiency. Stock Market allows a company to be aware of the trade with shares and finance which is at an agreeable price. Two of the companies chosen to

He pointed out that different economic levels have their own requirements and they may not follow the same process of industrialization. Moreover, he raised the most influential theory related to late industrialization that the economically backward states may have rapider growth rate as they are late comers, and the national development process relied on the degree of economic backwardness. That is to say the more backward a country, the faster it will advance (ibid).