THE BACKGROUND OF THE STUDY
In any economy there is a financial system that is usually responsible for regulating the financial environment of the company determining the types and amounts of funds to be issued cost finds and the use of which these funds are to be put the financial systems is made of two major markets: the money an the capital market.
While money market are market for long-term funds and securities, including treasury bills [YBS] treasury certificates [TC] negotiable certificates of deposits [NCDS or CDS for short], commercial papers [CPS] and other funds of less than one years duration; the capital market; is the market for longer term funds and securities whose tenure extends beyond one year. These includes loans, mortgage bonds, preference stocks, ordinary shares common stock federal government bonds also called Eligible development stock or Giltedged securities and industrial loan [Osaze 1997]. It is a “complex” of institution and mechanisms through which intermediate funds and long-term fund are pooled and made.
STATEMENT OF PROBLEM
The capital market history suggest the market values of stock and bonds can fluctuate widely from year to year and why does this occur at last part of the answer is that price change because new information arrives and investors reasces asset values based on that information. Some of these are problem
- Few listed securities: the number of quoted companies operating in the capital market is relatively small.
- Low demand for securities: the general low personal income within the economy lack of proper knowledge about the securities market the benefit accruing there of and the available of more attractive.
- Low level of market awareness: the low level of market awareness in Nigeria is still very low contribution to the low demand and supply in the market available to business, government and individuals and instrument already outstanding are transferred [Gwummtz and Daugali] 1975].
These institution, which is traditionally play one role or the other in the transfer of funds from servers to users, include stock exchange, share registers, issuing house stockbrokers and underwriters and the securities and the exchange commission. The relation between the system and the money and capital markets is depicted in figure 1.1 below
THE OBJECTIVE OF STUDY
The air of this study is to:-
1 investigate the liquidity problem of capital market
2 to highlight possible ways capital market can avert the experience in the implementation of the Nigeria.
3 To suggest the ways of improving accessibility of capital markets.
SIGNIFICANT OF THE STUDY
This research work will be beneficial to government and economy at a large, hence the abundant available in Nigerian capital market of public enterprises is to enable the general public to utilize this avenue effectively and contribute succefully to the development of the nation.
DEFINITION OF TERMS
The capital market can be defined as a large corporate organizations and public institution can source long-term investible fund by the use of capital institution.
It also described as the market for the buying and selling of capital market instruments such as shares, bonds, and debentures e.t.c