Capital Market Transaction Overview slide image

Capital Market Transaction Overview

INTRODUCTION A capital market is an organized market in which both individuals and business entities buy and sell debt and equity securities. It provides structures for transferring long-term savings in the economy to companies and governments for corporate, industrial and infrastructure development thus reducing their dependence on bank-based financing. End-users obtain funds from investors (institutional investors, insurance companies, charitable organisations) to achieve their goals while investors yield returns. Instruments traded in the Nigerian Capital market include: Equity (shares), over 90% of trading activities, Debt (bonds: government and corporate bonds), hybrids/derivatives (futures, options). There is also a commodity market for the sale of commodities such as agricultural products.
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