Stock Market Development Indicators And Economic Growth In Nigeria

  CHAPTER ONE Introduction 1.1      Background of the study Stock markets may affect economic activity through the creation of liquidity. It contributes to economic development by enhancing the liquidity of capital investments. Many profitable investments require a long-term commitment of capital, but investors are often reluctant to relinquish control of their savings for long periods. Liquid equity markets make investment less risky--and more attractive--because they allow savers to acquire an asset--equity--and to sell it quickly and cheaply if they need access to their savings or want t…