The Role of Capital Market in The Rapid

Development of The Country

Capital market globalization, in reality, is part of economic globalization.

This will bring about the transition in the global economy as a whole,

not limited to some places in certain Countries.

E nsuring sustainable growth and prosperity for all countries is a primary priority.

order to facilitate commercial finance, there is a greater need to improve and grow the capital
In

markets. A Capital market around the world plays a critical role in most countries and is used to
introduce privatization programmers and also plays an important role in the emerging growth of
the market. They perform a variety of political as well as economical functions. They are used
for trade, investment and opportunities to arbitrate. A capital financing market Where long-term
debt or securities backed up by equities are bought and sold. Capital markets are places between
capital-intensive companies and needy ones where savings and profits are driven. Capital
markets are in the process of rising transactional efficiencies. The role of Capital markets in
infrastructure development are large corporations, small and medium-sized enterprises (SMEs),
and economic growth linkages.

C apital markets provide the shortest and most efficient circuit between economies, or
temporary resource surplus, for those who want to invest to the medium or long term. Thus, the
capital market becomes a clear rival for the banks, offering a significant alternative to the much
more costly and hard to obtain a bank loan. Equity financing includes the acquisition and sale of
shares of which all share the result, whether positive or negative, unlike the borrowing from
banks in which the banks might be hesitant to lend because of the company's risk profile and
greater exposure to a negative outcome of a loan deal. The stock market plays a significant part
in raising funds or resources for these businesses. However, the liquidity crisis in
underdeveloped functioning markets largely deters foreign companies because trading becomes
costly. Promoting the private-sector-led economic growth needs Developing an enabling
framework for the private sector to prosper. For long-term lending companies instead of
borrowing from banks to collect the money through the stock exchange. Capital markets help
businesses raise financing without needing bank borrowing. This is a benefit for both businesses
and investors, considering the economic growth uncertainties.

C apital markets play a significant part in nations' economic growth and prosperity. Most
African people have increasingly undergone reforms in the financial sector such as the restriction
and privatization of state-owned banks and the capital market development. While the capital
markets of the developing countries have undergone sectoral reforms, they are still very low in
terms of market capitalization due to a small number of companies and limited household
participation, either due to limited resources or lack of knowledge of the capital markets. Now so
many economies around the world are calculated by the development and productivity of their
capital markets. The growth and performance of the stock market is usually determined by the
stock market index, with the capitalization of the countries market listed by IFC as the
developing economies rise from $488 billion in 1988 to $2,225 billion in 1996. Capital market
turnover for the emerging markets rose on average by 9 per cent a year between 1994-2003,
while developed countries grew by 22 per cent a year. The role of capital markets is a significant
determinant of savings, investment efficiency and speed of economic growth in a country. In
addition, it makes it easier for new businesses to collect longer-term risk capital and reduce their
reliance on traditional lenders such as banks.

Capital marketers reward you for what you learn

that other people have yet to ascertain.

C apital markets play a major role in economic development by providing goods and
services, suppliers and infrastructure development organizations to support real-world growth.
The capital market played a critical role for the initial 25 banks during the restructuring of the
banking sector in 2005, which were able to meet N25 billion minimum capital requirement. The
capital market has helped governments and businesses collect long-term capital to finance new
ventures and to develop and modernize commercial / industrial interests. The recent
recapitalization of the banking sector and the avenue of long-term funds for various government
agencies and companies of the World, during the privatization of publicly owned companies, the
capital market has played significant roles.

A percentage of long-term investments channeled to long-term investment is growing

on the capital markets. The capital market allows the private insurance industry to exploit
individual small households' long-term assets and turn them into investment over the long term.
It meets the role of the current purchasing power in monetary terms, from the surplus to the
deficit sectors, in exchange for future repayment of a larger purchasing power. Thus, the stock
market allows businesses raise money funds to finance the investment portfolio. It enables small
savers to assert wider control over productive assets. It allows them to benefit from economic
growth and resource distribution, and provides investment opportunities to encourage in-house
savings and investment ratios required for rapid industrial development in a vital thrift
community. It creates opportunities for companies to borrow long-term funds for investment
purposes. A Capital market creates marketing platforms for Operations growth, which results in
improved production and productivity. It gives facilities and allowing international companies to
sell their shares to the capital market. It Encourages inflows into domestic shares from
international capital firms or investors. Offers government resources to fund programmers and to
provide basic services for Economic Socio Growth.

C apital markets are a network of specific banking firms, a set of frameworks,

processes and systems which allow medium- to long-term suppliers and users to come together
in various ways. Capital markets connect the financial sector with the real economy, which is the
economic field that deals with goods and services development. By combining long-term
investments with long-term capital, this helps disperse stress on the financial system.
Considering the position of the consumer economy, the stock market occupies an important place
by means of its unique mechanisms and is effective in the significant role in the Socio-economic
development. Consequently, Public authorities should take note of the role played by the capital
market in the economy of that country. In the outcome of a well-known effort by the emerging
markets to reallocate financial capital to productive activities, the valences of resources could be
even more significant, contributing to economic transition, while also being of interest in the
process of privatization.
 F rom, the investor's point of view, the stock market enables the allocation of funds
By return and risk providing a wide range of financial instruments with various profitability risk
characteristics, ideal for saving and Defending against costs and risks nowadays is a requirement
forced on the world economy by development, based on instability and the financial crisis,
without distinction affects both the stock market developed and the emerging. Trying to cover
the risk that can be exerted by Various processes, business orders, and derivatives determines the
role of risk protection, the fundamental feature of the investment purposes. The stock market also
provides equity funds and resources for infrastructure investments with major economic benefits
through building highways, Water and sanitation systems, accommodation, transportation,
electricity, etc. The stock market Improves capital allocation efficiency by ensuring that the
projects considered viable and thus profitable attract funds. In turn, this will boost the
competitiveness of domestic industries and increase the domestic industry's ability to compete
internationally, given the current trend toward international expansion. In contrast, the stock
market promotes public-private partnerships to promote private sector participation in profitable
investment. The importance of moving economic growth from public to private to improve
global productivity has become unavoidable as resources continue to decline. It allows the
service sector, the capital gap and complement its efforts to fund critical socio-economic growth
by rising a long-term project-based resources. It also attracts international investors who are
important to add to national savings. It promotes foreign fund inflows into the domestic
economy.

A capital market essentially shifts monetary buying power from investor surplus
assets in exchange for greater potential purchasing power to those with deficits over a fixed term.
They are instrumental in recapitalizing and privatizing major infrastructure programmers and
sectors, banking, insurance, real estate development etc. The Capital markets channel and
increase long-term savings to meet the monetary demands of deficit-funded companies in order
to form long-term investments such as pension funds, funeral spending cover, firm specific
investments, etc. This is especially useful for companies that wish to access funds at a low price
without changing ownership rights from private shares to equity holdings. Capital markets help
fund economic development needs that have significant impacts like drainage and sewer
networks, roadway growth, electricity, accommodation, communications, socio-economic
benefits, public transportation and more. Encourages government policy of social equity and
economic development by providing platforms for companies to compete globally, create
private-public partnerships, use a capital effectively, increase domestic productivity, and
stimulate growth, global integration, and promote economic growth. The capital market structure
offers price regulation, appetite-based risk management, guarantees fair investor returns, and
prevents full stock market policy decline. A Capital market Bridging between capital suppliers
and customers. The interaction between financial deficit and financial surplus agents will
actually occur directly through direct financing but also through an indirect financing money
market, a situation in which special operations forces promote the relationship between both the
actual monetary policy and the financial sector. By offering capital markets, it promotes the
effective allocation of limited financial resources, various risk-return features for a wide variety
of financial instruments. Capital markets boost Efficiency in allocating money by ensuring that
only initiatives considered viable are successful in raising funds. In turn, this will improve the
domestic industry 's competitiveness and strengthen the domestic industry's ability to compete
globally, considering the existing momentum towards the process of globalization. The effect
would be to increase domestic production, which could lead to increased exports, development
and economic growth. Capital markets are promoting PPPs and thereby enabling the engagement
of the private sector in productive uses. As resources continue to decrease, the importance of
shifting economic growth from private to public to increase competitiveness of an economy that
has become inevitable. It helps in closing the capital gap and fostering its efforts to promote vital
socio-economic growth by the long-term project-based investment. It also attracts international
equity investors that are vital to complementing domestic investments and cultivating foreign
financial capital inflows into the country's economy. Capital markets play a significant part in
emerging capital markets' economic growth. Well-functioning markets ensure that prices for
their shares are paid or collected from both companies and investors. This means successful
projects are funded, and proposals with negative value are refused. Most notably we argue that
the process of development will be accelerated by entry into world capital markets. A country
that erects itself for foreign participation would face higher capital costs. This discourages
domestic investment, and limits direct foreign investment. Today, the stock market of every
global economy is a fact reached. Its importance is unchallengeable, its composition is highly
complex and creative, permanently adapting to and at the same time creating an important factor
in a economic climate possibilities and risk to the same degree for all levels of economic activity
participants.

R ising stock markets and economic growth suggest that the capital market is
boosting economic activity and growth. Countries with well-developed capital markets are rising
bigger than non-capital markets. Evidence indicates that most capital markets are deeply
undeveloped in African countries, those countries that have adopted capital market growth-
oriented reforms have been able to expand at comparatively high and sustainable levels. 2011
research shows that since 2000 South Africa, the nation with Africa, the largest and most
advanced stock market, has evolved considerably in terms of market capitalization and volume
of trading. The position of the capital markets in terms of wealth distribution and making capital
safer for investors is critical for inclusive growth. Capital markets will create greater capital
inclusion through the introduction of new goods and services tailored to buyers 'expectations for
risk and return, as well as project needs and borrowers' risk appetite. It must first strengthen
financial institutions, includes banks, mutual funds, pension funds, credit and savings unions, in
order for a country to develop and expand a truly capital market. These institutions are the most
relevant that can generate finance in the Individual savings form, and placing them in capital
markets.  Unfortunately, this Financial Liberalization Reform Program has not been completed in
some nations, resulting in the non-establishment or further growth of the capital markets. In
developed countries, further growth of the capital markets is expected to improve mobilizing
local resources and promoting a more productive use of land. And the States such countries will
play a major role in the promotion of foreign direct investment and their markets align with
global markets.

C apital markets can be characterized as underdeveloped in transition countries and

have little impact on the development of the national economy, particularly in comparison with
developed economies. Thus, the foregone analysis could conclude that the like elsewhere,
capital markets played a critical role in the Country development in general and Industrial
growth private sector companies in particular, and helps the Government to harness internal
capital to enforce various public sector growth projects. As a capital market segment, it fulfils a
significant role in mobilization and channeling of energy that would otherwise remain dispersed.
The stock exchange taps on the new resources and stimulate a broadly based capital structure in
investment Industry. Continuing with the investment liberalization programmed for institutional
investors and introducing and enforcing the savings and investment support steps is therefore of
vital importance. These far-reaching and consistent steps can be used to promote the creation of
financial structures with emphasis on enhancing "institutional capital," improving corporate
governance, protecting property rights, and financial education-focused initiatives.

A well-developed stock market provides a competitive framework for the delivery of

various financial and business items throughout the country at low costs. This discussion aimed
to illustrate a significant role, the capital market has played in economic development and
growth. The stock market promotes successful Intermediate financial-resource. It improves
savings mobilization and thus stimulates investment productivity and efficiency, as well as
economic development and growth. Finally, this paper provides an empirical framework for
supporting financial and economic growth, and in particular the most competitive aspect of the
financial system, that is, the capital market. These results have major consequences for
policymakers, as financial markets are considered to play a key role in fostering economic
development.[ CITATION Per12 \l 1033 ]

References:

 Akingbohungbe, S. ((1996)). The role of the financial sector in the development of the
country economy.

 M., A.-f. (2006). The World capital market and socio-economic development. 9-16.

 Obamiro, J. (2005). Growth and the role of stock market. Journal of Economic and
Financial Studies,.

 Perkins, D. H. (2012). Economics of development.