Nigerian Stock Exchange : What are the function and objectives of Nigerian stock exchange?

The Nigerian stock exchange provides the platform for buyers and sellers to deal on stocks. It was founded in 1960 as Lagos stock exchange but was renamed to Nigerian stock exchange in 1977. The Nigerian stock exchange (NSE) is regulated by the Securities and Exchange Commission. The body which is the body mandated oversee the NSE to mitigate breaches of market rules and help avoid unfair manipulations/trade practices.

Nigerian stock exchange

The Nigerian stock exchange operates via automated trading system with routinely updated information on the listed companies. The Nigerian stock exchange opens around 9.30am every business day and closes by 2.30pm Nigerian time.

Dealers on the NSE, trade through a network of computers which are connected to a main server. Many members of the NSE trade online from their offices. This has since made trading on the Nigerian stock exchange more convenient.

The Nigerian government has also done a lot to encourage foreign investors to enter the market and enlist as dealers on the NSE especially through the abolishment of the law that previously hindered foreigners from doing so.

Functions of Nigerian stock exchange

 The Nigerian stock exchange has many obligations as the chief controller of the Nigerian market, especially after its deregulation.

The NSE has been given the extra responsibility of determining the prices of the secondary market which is done by stoke brokers and the issuing houses.

Below are some of the functions of the Nigerian stock exchange;

  • The NSE provides an open forum for traders to buy and sell securities
  • They also provide an avenue for businesses within the country to raise needed capital for the various businesses
  • The Nigerian stock exchange also provides guidelines for various dealers in the market to mitigate sharp practices.
  • The NSE checks liquidity in the country’s economy
  • The Nigerian stock exchange also facilitates trading on government issued securities.

Please note that this is not a conclusive list of the functions of NSE, you can visit their website http://www.nse.com.ng to read more on this.

Conclusion

The Nigerian stock exchange controls the Nigeria securities market with its many big players. Also, anybody looking to invest or enter into business in the country’s economy is expected to thoroughly study the operations of the NSE to ensure that the market will be favorable.

This article was aimed at giving readers a glimpse of how the Nigerian stock exchange operates and if you want to learn more about the NSE please visit their website at http://www.nse.com.ng you’ll find all the answers you need there.

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