Stock Market Development: Its Impact on the Economic Growth in Nigeria
In examining the relationship between stock market development and economic growth, it is important that we throw light on some key concepts that will enhance a better understanding of the study. These are the concept of stock market and the concept of economic growth and development.
The Stock Market
The Collins Dictionary of Economics (2005) defines a stock market as a market that deals in the buying and selling of company stocks and shares and government bonds. Similarly, according to the Wikipedia free encyclopedia, a stock market is a mutual organization which provides trading facilities for stock brokers and traders, to trade stocks and other securities. Additionally, Armstrong (1977) describes the stock exchange as “a market wherein to buy and sell the world’s capitalized values”. According to him, “it is the citadel of capital, the temple of values, the axle on which the whole financial structure of the capitalist system revolves.” The purpose and duty of a stock exchange is to organize security trading so that process may be found in the best possible condition (Urban, 1990). [Read more…]