THE PUSH AND PULL FACTORS OF THE CAPITAL MARKET IN A DEVELOPING ECONOMY

That capital market has a role to play in any economy is unarguable. That the performance of any capital market is dependent on a number of economic factors and political stability is not in question. It should also be borne in mind that the promotion of a capital market is intimately tied up with the objective of accelerated economic growth and development. However, there is need to highlight the factors that influence what happen in the capital market which may be neglected especially in emerging economies. Therefore the study is set to unmask the supportive and unsupportive factors that determine the direction and magnitude of events in Nigerian capital market. The prospect of the Nigerian Capital Market in providing long term fund for domestic and foreign industries and for public projects has been established but we must all be ready to handle the challenges posed by internationalization and globalization which make the world a global village. Capital market main function is to mobilize and allocate the nation resources to the numerous users. The importance of this is evident in the way the capital market has assisted government at all levels to raise development bonds to finance long-term and low pay-back infrastructural development. It has also assisted companies to raise funds for expansion and modernization of their asset which leads to increase productivity at higher profit. Thus it is a truism to say that the economic growth and development of Nigeria can be tied around the capital market and if the recommendations of this work are diligently and effectively applied, the Nigerian Capital Market will achieve efficiency thereby serving as catalyst to the economic growth and development of Nigeria