AN APPRAISAL OF STOCK PRICING IN THE NIGERIAN CAPITAL MARKET (A CASE STUDY OF NIGERIA STOCK EXCHANGE (NSE)

ABSTRACT

The price of a company stock is an indication of the performance of company where stock is properly priced, investors can invest in the most profitable companies based on the stock prices of the companies.

 

It is in line with the foregoing that the researcher has decided to appraise the efficiency of stock pricing on the Nigerian Stock Exchange

 

In doing thus, the researcher adopted the historical and descriptive methods of research. Data was sourced through the use of interviews, questionnaires and journals. The chi-square techniques of data analysis was employed in conjunction with percentage and tables.

 

Based on the analysis carried out, it was found that stock on the Nigerian Stock Exchange were efficiently priced.

 

The findings reveal that the Nigerian Stock Exchange is faced with a number of problems such as, the retention attitude of Nigerian investors and also the problem of  an underdeveloped financial system and finally the oligopoly structure of the NSE does not augur well for competition and development.

 

Recommendations made include the need for government to pursue its current privatization process with more vigor, and that there should be a significant lowering of corporate tax rates on publicly quoted companies, which increase public confidence in the Stock Market, to mention but a few.        

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