PRIVATE PLACEMENT OF SECURITIES: DEVELOPMENT IN NIGERIAN SECURITIES MARKET
PRIVATE PLACEMENT OF SECURITIES: DEVELOPMENT IN NIGERIAN SECURITIES MARKET
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Date
1999-11
Authors
BELLO, BASHIR
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Abstract
Many investors in Nigeria are not conversant with and do not avail themselves of the enormous
opportunities inherent with private placements of securities. To a lot of these investors, the only way to
invest in securities is by responding to a widely advertised offer for subscription- Public offers.
However, the act of obtaining funds through the issue of security is a costly, complicated, time
consuming and periodically uncertain process. Many of these difficulties can be oveu-eome if sufficient
private sources are available and be utilized by the firm.
This project attempts to examine the extent to which Nigerian investors avail themselves of the
opportunities inherent in private placements of securities and also evaluate the degree to which Nigeria
capital market uses private placements in its efforts of transforming capital from saving or surplus units
to deficit or investing units.
The chi-square test was used to test data collected through the use of questionnaires from selected
sample of individual and institutional investors.
The study revealed that Nigerian investors are not responsive to private placements of securities. It was
also found that the use of private placement of securities in the Nigerian securities market is grossly in
adequate.
Based on the above findings of this study, it is recommended that the Nigerian securities market should
encourage fund seekers to raise funds through private placement to avoid some of the cost associated
with a public offering of securities. There is the need to enlighten the investing public on the benefits of
private placement of securities, since some investors are not even aware of the existence of such
investment opportunity. However, the Securities and Exchange Commission should also regulate
private placement of securities in order to increase public confidence on such investment.
Description
A PROJECT SUBMITTED TO THE POSTGRADUATE
SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA, IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION (MBA) DEGREE
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY, ZARIA.
Keywords
PRIVATE,, PLACEMENT,, SECURITIES,, REDEVELOPMENT,, NIGERIAN,, SECURITIES,, MARKET