Roles and functions of Nigerian stock exchange

Roles and functions of Nigerian stock exchange

In this article, we will consider the functions of Nigerian stock exchange. First of all, it exists to control and regulate the flows of money in the state, to provide favorable conditions for organizations and individual entrepreneurs engaged in trade, investing money in shares for the purpose of getting profit. To learn more just click 'READ MORE'.

Roles and functions of Nigerian stock exchange

Let's list the most important roles and functions:

  • Thanks to the Nigerian stock exchange, it is possible to control the inflow and outflow of money as a result of investment. This is an effective tool in the fight against inflation.
  • The capitalization of companies in the market is increasing, which stimulates economic growth.
  • Organizations are becoming stronger and can act much more confidently.
  • The general state of the economy is stabilizing.
  • Without the correct movement of money, the process will be left in the hands of the people, and as a result, economic growth will be declined
  • Exchange brokers and other persons engaged in trade, the redemption of securities need certain facilities for successful activities and Nigeria stock exchange provides them with this. This applies to both large and small companies.

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Buy - Sell
  • Forum participants can exchange securities and set prices on them.
  • Investors are protected from dangerous transactions, complex rules, and restrictions. They are under state protection.
  • Investors and representatives of all industries learn valuable information in a timely manner.
  • The prices set here are economic indicators. As a result, the government receives guidelines for the conduction of monetary policy.
  • Each investor can assess the well-being of his company.
  • Private organizations can publish their shares without making new ones.
  • It is easier to identify a viable business for investment.
  • Entrepreneurs can have long-term funds.

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Functions of Nigerian stock exchange

Several facts from the history of NSE:

  • This governing institution began operating in 1960 in Lagos. A special council was assembled at the time.
  • Official work began in 1961. Then there were 19 securities on the list. 4 large companies acted as trading dealers.
  • Between the month of August and September, the money flow grew from 80,500 to 250, 000 pounds. This bulk affected public investment.
  • In 1977, the organization gained importance of stock market Nigeria. Subsidiaries were established in several of the country's largest cities.
  • According to reports, by the beginning of 2017, 176 organizations were registered, the total fund of which is 8.5 trillion naira.
  • In all of Africa, there are similar organizations, but NSE Nigeria is the third largest.

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Nigerian stock exchange

At the moment, the activity of exchange is controlled by the state in order to prevent violations of market rules. All unfair manipulations are discovered and cut off in time. Absolutely fair trading practice is provided.

The work of the exchange is improved by the introduction of an automated system. Information on the activities of companies is published every day. Reports are prepared every week, month, quarter, and year.

For dealers, it is extremely convenient that since 1999 they can use a computer for conducting commercial operations. Communication with the central server is maintained. Remote monitoring and management are very important in the business world, where every minute is extremely important.

In total there are 13 branches in the country. The exchange works on the creation of additional representative offices, which will have to ensure effective trade in real time. You can start trading at 9:30 and it is crucial that you finish the work before 14:30.

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To stimulate the inflow of funds from abroad, state authorities abolished many laws that prevent it. Foreign brokers can become dealers of Nigerian stock exchange. Access is open to investors of any nationality. There are no restrictions for business.

NSE Nigeria

It's really hard to argue with the NSE importance. Let's hope that this organization and other measures taken by the state government situation will lead to an improvement in the Nigerian economy.

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