Nigeria Stock Exchange: Meaning And Features - SS2 Accounting Lesson Note
The Nigeria Stock Exchange (NSE) is a market where stocks and other securities of publicly traded companies in Nigeria are bought and sold. It provides a platform for companies to raise funds by selling shares of their stock to investors, while also allowing investors to buy and sell those shares for a profit.
Features of the Nigeria Stock Exchange (NSE)
Some features of the Nigeria Stock Exchange (NSE) include:
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Listing Requirements: Companies must meet certain requirements to be listed on the NSE. These include financial stability, profitability, and transparency.
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Market Indices: The NSE has several market indices, including the NSE All-Share Index (ASI), which tracks the performance of all listed companies.
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Trading Sessions: The NSE operates two trading sessions, the pre-market trading session and the main trading session.
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Market Capitalization: The total value of all listed companies on the NSE is known as market capitalization. This is an important metric used to measure the size and performance of the exchange.
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Investor Protection: The NSE has established rules and regulations to protect the interests of investors, such as requiring companies to disclose financial information to the public and prohibiting insider trading.