Essay on AN INVESTIGATION IN THE DOWNWARD TENDENCY IN GLOBAL STOCK MARKETS: A CASE ANALYZE OF THE NIGERIAN STOCK MARKET

RESEARCH PROPOSAL

PROPOSED RESEARCH TITLE:

AN INVESTIGATION IN THE DOWNWARD CRAZE IN GLOBAL STOCK MARKETPLACES: A CASE ANALYZE OF THE NIGERIAN STOCK MARKET

ANALYSIS BRIEF

A brief history of stock trading and trading associations could be traced as far back as the eleventh century once Jewish and Muslim vendors set up control associations. Following centuries of evolution, share markets would be the symbol of commerce in the modern world. It operates in various countries and trades a range of securities. The world stock market capitalisation is predicted to be regarding $ 36. 6 Trillion. The wall street game has numerous functions just like capital mobilisation, investing possibilities, risk circulation etc . The major stock exchanges in the world today contain New York Stock Exchange, Birmingham Stock Exchange, Holland Stock Exchange, German Stock Exchange, Hong Kong Stock Exchange and Tokyo Stock Exchange.

There have been different stock market failures in the past like the Wall Street crash of 1929, the crash of 1973/74, the 1987 crash; known as black Monday, the dotcom bubble of 2000 and the more recent crash in 08 caused by the subprime mortgage loan crisis in the us. The economic crisis of 08 which originated from America propagate to various financial systems in the world and their stock marketplaces were influenced. It reduced the value of shares around the world by as much as 41% and affected the two major and emerging inventory markets. The Nigerian currency markets is a great emerging marketplace in Africa. After obtaining the position of 1 of the most successful, efficient and fastest growing equity industry in the world, with a return on investment as high as 78% in 2007 the Nigerian Stock Exchange (NSE) was seen as a great investment haven. In reaching the increase of 66, 371. two points and N12. six Trillion in market capitalisation in March 2008 the Nigerian Currency markets (NSM) started to plummet. Simply by March 2009 a year later, the NSE experienced lost regarding 60% of its worth and was left with a market capitalisation of N4. six Trillion, mailing all the risk holders into panic.

SHARE MARKETS

A stock market is a location where stocks and options and investments can be traded or marketed from one owner to another. It is just a place exactly where buyers and sellers of securities satisfy. The process of investing is called trading. Stock market segments are divided into both primary and extra markets. The principal market relates to the listing of businesses on the exchange, these companies generally want to boost finance. The secondary market deals with exchanging existing securities. It makes up about the majority of the transactions that take place in the currency markets. There are various members in inventory markets. You will find investors, brokers and industry makers. The investors could be individuals or perhaps institutional physiques that transact either on their own behalf or perhaps on behalf of additional investors. Broker's act as brokers who make an effort to carry out deals on behalf of their very own clients on the best possible price, the brokers also provide investment tips and analysis services. Industry maker is actually a dealer that quotes the two buy and sell rates of investments on a constant basis, when it is unable to find counterparties for a buy or sell purchase; they have to anticipate to take an open position. The stock market shows and magnifies all economic flaws. If the economy appears good, the stock market functions well and when the economy should go bad, the stock market reflects it as well.

MARKET CRASH

A market crash is a large and unexpected drop in asset prices. Market fails are usually combined with large offering pressures available in the market. The drop in advantage prices happens really quickly while the restoration is a slower process.

FINANCIAL CRISIS

A financial crisis is a interruption to economic markets which will hinders the market's ability to allocate capital. According to Portes and Vines (1997) all turmoil are " crisis of success” because initially the main city inflow in to the market is an indicator of monetary promise and success yet this influx...

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