1.0 BACKGROUND OF STUDY
It is a known fact that the investment that promotes economic growth and development requires long term funds, far longer than the duration for which most savers are willing to commit their fund. Capital market is a collection of financial institutions set up for the granting of medium and long term loans. It is a market for government security, for corporate bonds, for the mobilization and utilization of long-term funds for development-the long term end of the financial system. In this market, leaders (investors) provide long term funds in exchange for long term financial assets offered by borrowers. This market embraces both the new issues (primary) market and secondary market. Such securities might be raised in an organized market such as the Stock Exchange. In this sense, it involves consortium under writing, syndicated loans and project financing. Thus, it is a mechanism whereby economic unit desirous to invest their surplus funds, interact directly or through financial Intermediaries with those who wish to procure funds for their businesses. In the Nigerian context, participants include Nigerian Stock Exchange, Discount Houses, Development banks, Investment banks, Building societies, Stock Broking firms, Insurance and Pension Organizations, Quoted companies, the government, individuals and the Nigerian Stock Exchange Commission (NSEC) The capital market is therefore very important to any economy because it encourages savings and real investment in any healthy economic environment. Through the market aggregate savings are channeled into real investment that increases the capital stock and therefore economic growth of the country.