Roles of Nigerian Stock Exchange (NSE) - JSS3 Social studies Lesson Note
Market Facilitation: The Nigerian Stock Exchange (NSE) serves as a marketplace where securities are bought and sold, fostering a level playing field for market participants and maintaining transparency in transactions.
Listing and Monitoring: Companies can list their shares on the NSE, gaining access to capital. The exchange actively monitors listed firms, ensuring adherence to regulatory standards and safeguarding investor interests.
Capital Formation: Playing a pivotal role in capital markets, NSE enables companies to raise funds by issuing new shares, contributing to economic growth and development through increased investment opportunities.
Price Discovery: Through the dynamics of supply and demand, the NSE aids in determining fair market prices for securities, establishing a reliable mechanism for price discovery in the financial market.