Nigerian Stock Exchange
Encyclopedia
The Nigerian Stock Exchange (NSE) was established in 1960. As of March 9, 2007, it has 283 listed companies
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

 with a total market capitalisation
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...

 of about N15 trillion ($125 billion). All listings are included in the only index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....

, the Nigerian Stock Exchange All Shares Index.

History

The Nigerian Stock Exchange was founded in 1960 as the Lagos Stock Exchange.
Akintola Williams played a leading role in establishing the Exchange.
He remained actively involved with it into his old age.
Attending a stock exchange ceremony in May 2011 at the age of 92, Williams called on operators to protect the market and ensure there was no scandal. He said that, if needed, market operators should not hesitate to seek his advice on resolving any problem.

When the Exchange started operations in 1961 there were just 19 securities listed for trading.
In December 1977 the name was changed to the Nigerian Stock Exchange.
Branches have been established in the major cities of the Federation, each with their own trading floor: Kaduna
Kaduna
Kaduna is the state capital of Kaduna State in north-central Nigeria. The city, located on the Kaduna River, is a trade center and a major transportation hub for the surrounding agricultural areas with its rail and road junction. The population of Kaduna is at 760,084 as of the 2006 Nigerian census...

 (1978), Port Harcourt (1980), Kano
Kano
Kano is a city in Nigeria and the capital of Kano State in Northern Nigeria. Its metropolitan population is the second largest in Nigeria after Lagos. The Kano Urban area covers 137 sq.km and comprises six Local Government Area - Kano Municipal, Fagge, Dala, Gwale, Tarauni and Nassarawa - with a...

 (1989), Onitsha
Onitsha
Onitsha is a city, a commercial, educational, and religious center and river port on the eastern bank of the Niger river in Anambra State, southeastern Nigeria....

 (February 1990), Ibadan
Ibadan
Ibadan is the capital city of Oyo State and the third largest metropolitan area in Nigeria, after Lagos and Kano, with a population of 1,338,659 according to the 2006 census. Ibadan is also the largest metropolitan geographical area...

 (August 1990), Abuja
Abuja
Abuja is the capital city of Nigeria. It is located in the centre of Nigeria, within the Federal Capital Territory . Abuja is a planned city, and was built mainly in the 1980s. It officially became Nigeria's capital on 12 December 1991, replacing Lagos...

 (October 1999) and Yola
Yola, Nigeria
Yola is the capital city and administrative center of Adamawa State, Nigeria. Located on the Benue River, it has a population of 88,500 . Established in 1841, Yola was the capital of a Fulani state until it was taken by the British in 1901. Daytime temperatures can easily exceed during the dry...

 (April 2002).
By August 1999 there were 262 listed securities with a total market capitalization of about N287.0 billion.

Operation

The NSE is regulated by the Securities and Exchange Commission
Securities and Exchange Commission (Nigeria)
The Securities and Exchange Commission is the main regulatory institution of the Nigerian capital market.It is supervised by the Federal Ministry of Finance....

, which has the mandate of Surveillance over the exchange to forestall breaches of market rules and to deter and detect unfair manipulations and trading practices.
The exchange has an automated trading System. Data on listed companies' performances are published daily, weekly, monthly, quarterly and annually.

Trading days and times on the Lagos Exchange are Monday to Friday, 11:00 to 13:00. Charges include a 3% commission on the traded value of shares and a 1% Securities and Exchange Commission fee. Withholding tax on dividend and interest remains at 10%; corporate income tax is 35%, and capital gains tax stands at 10%.

In order to encourage foreign investment into Nigeria, the government has abolished legislation preventing the flow of foreign capital into the country. This has allowed foreign brokers
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...

 to enlist as dealers on the Nigerian Stock Exchange, and investors of any nationality are free to invest. Nigerian companies are also allowed multiple and cross border listings on foreign markets.

Associations

The Lagos Exchange is an affiliate member of the World Federation of Exchanges
World Federation of Exchanges
The World Federation of Exchanges , formerly FIBV - Federation Internationale des Bourses de Valeurs , is an international organization for securities and derivative markets such as stock exchanges....

 (FIBV). It is also an observer at meetings of International Organization of Securities Commissions
International Organization of Securities Commissions
The International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....

 (IOSCO), and a foundation member of the African Stock Exchanges Association
African Stock Exchanges Association
The was incorporated in 1993 in the Republic of Kenya. ASEA's aim is to provide a formal framework for the mutual co-operation of stock exchanges in the African region. Its functions include the exchange of information and assistance in the development of member exchanges.There are 29 exchanges...

 (ASEA).

Council

On 6 August 2009 the new council members of the NSE were nominated
President Alhaji Aliko Dangote, CON
1st Vice President Chief Reginald Abbey-Hart,JP
2nd Vice President Dr Erastus B.O. Akingbola, MON

See also

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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