Nigeria Stock Exchange: Meaning And Features - SS2 Accounting Lesson Note
The Nigeria Stock Exchange (NSE) is a market where stocks and other securities of publicly traded companies in Nigeria are bought and sold. It provides a platform for companies to raise funds by selling shares of their stock to investors, while also allowing investors to buy and sell those shares for a profit.
Features of the Nigeria Stock Exchange (NSE)
Some features of the Nigeria Stock Exchange (NSE) include:
-
Listing Requirements: Companies must meet certain requirements to be listed on the NSE. These include financial stability, profitability, and transparency.
Market Indices: The NSE has several market indices, including the NSE All-Share Index (ASI), which tracks the performance of all listed companies.
Trading Sessions: The NSE operates two trading sessions, the pre-market trading session and the main trading session.
Market Capitalization: The total value of all listed companies on the NSE is known as market capitalization. This is an important metric used to measure the size and performance of the exchange.
Investor Protection: The NSE has established rules and regulations to protect the interests of investors, such as requiring companies to disclose financial information to the public and prohibiting insider trading.