THE ROLE OF STOCK BROKERS IN THE ECONOMIC DEVELOPMENT OF NIGERIA

INTRODUCTION

In any economy there is a financial system  that is responsible for regulating  the financial environment of the society determining the types  and use of funds to be issued, source of funds to be put. The financial system is really made  up of two major markets, namely money and capital stock market. The many market is the market for short term funds and securities including treasury bills, treasury certificate negligence of deposits, commercial paper and other funds of   which are less than a year duration.

Thus the  aim of the regulating bodies composed of Nigerian stock  exchange commission (SEC) is to promote development of  orderly capital  market to have authority over its members (stock broking firms) to whom it set  rules of ethics are made to guide their  professional behaviour in the course of carrying  out its functions and create awareness of the general public. Stocks exist to enable companies in need of long term financing to sell pieces of the business stock equity securities in exchange for cash. This is the principal method of raising business capital other than  issuing bonds. When the stocks of these corporations, which all which corporations  must issue, are owned by the public at large, including both private investors and institutions, they are said to be publicly held. These publicly held shares can be easily traded (sold) to other investors in the stock market and are  thus  said to be liquid,  or  readily conversed to cash. Stock breakage firms usually, serve as intermediaries in the transactions, buying the new securities at wholesale prices from the issuer and then reselling them to  the investing public at retail prices                                       

  

HISTORICAL DEVELOPMENT OF CASE STUDY IN NIGERIA STOCK EXCHANGE

The dealing members of the Nigeria stock exchange are institutions who are licensed  by the exchange as stockbrokers to buy and  sell securities quoted on the  exchange on behalf of the investing public. 

          

In 1960, Nigeria stock Exchange was established with branch  in Kaduna in 1978. Prior to the establishment of the Nigeria stock exchange the were not equipped enough with the information of stock broking and its importance to an individual, groups, organizations and global economic development.

In essence the awareness  was low but from 1936 to date a considerable number of stock broking firms sprang up in Nigeria and in  Kaduna particularly the first stock broking  firm served as an eye opener to investors and the potential ones, with a highly experienced board and a crop of seasoned and   dedicated  professionals positioned to tackle the challenges of this new millennium. The branch is situated  in Kaduna to exploit the immense untapped natural resources and economic potentials of the country in general.

LITERATURE REVIEW

This chapter review of literature entails the review another notable authorities, opinions in this field. This is to give the entire writer up a sound theoretical base. He the researcher is going to consider, journals, publications, text and documented interviews on security an security  work investment as  developmental of the ingrain economy. This work up is  based on  economical development  through there are of development  like infrastructural but for the purpose of this study it is limited to economic development. Security is a document certificate etc showing ownership of proudly (especially bonds, stocks and shares).               

The prime role and  essential reason  for being a stock broker is to act as an agent on behalf  of his client. He must put his clients  interest  first above his or  anything else and he must get the bets price for  his  client. You can use the  services of a stockbrokers simply to execute your instruments, or you can  ask  that he acts as an advisers in addition.  The distinction is important and you  must be aware of the ramification between the two distinct and  different roles. Remember that  you chose to be advised by a stock-broker or do all  your own research and construct a portfolio particularly suited to your own needs, you will  have to have your  dealing  done by some one who  is authorized. 

Societies have in the cause of production and  consumption created  surplus, which were used on a continued basis to create surpluses. Every nation has at one time or the other posed capital which are  transformed and improved upon through  the use of human labour to generate more capital for higher rates of economical growth  especially in metropolitans like Kaduna stock broking is the buying and selling of shares on behalf of customers and offering advisory services top them.