Duties and Functions of the Nigerian Stock Exchange (NSE)

Duties and Functions of the Nigerian Stock Exchange (NSE).

Functions of the Nigerian Stock Exchange – The Nigerian Stock Exchange (NSE) formally known as the Lagos Stock Exchange was established in 1960 and renamed in 1977. The NSE is simply referred to as a marketplace where people sell and buy stock. This article brings to light the functions of the Nigerian Stock Exchange and other details.

Without a doubt, NSE is one of the major contributors to the country’s economy due to its increasing number of investors. Quality information is the key to investor’s success in NSE because you would need to have pre-knowledge of which stock to buy and when to sell such stock. The factors a stock trader needs to consider are the history, quality, cost, and perception of the stock.

The NSE has a list of 180 companies with total market capitalization of about N2.22 trillion or 17.10 percent in seven trading sessions with the market maintaining an upward trend since the beginning of 2020. It creates a medium in which investors can use disposable income to buy stocks with the belief that it will later rise in value.

Their activities and transactions are regulated by the Securities and Exchange Commission (SEC).

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Functions of the Nigerian Stock Exchange

1. It provides a platform for selling and buying of stocks and securities.
2. It provides opportunities for raising new capital.
3. It protects investors from shady deals.
4. It facilitates dealings in government securities.
5. It encourages savings.
6. It disseminates information to entrepreneurs and industrialists.
7. It assists the government to implement monetary policies.
8. It provides parameters for measuring companies’ goodwill
9. It fights against inflation.
10. It advises the government, investors and industrialists to deal with stocks and securities.

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