Is nigerian stock market efficient

Is nigerian stock market efficient

Posted: V(o)ViK Date: 04.07.2017

Wednesday, 21 June at If one is to do an assessment of the Nigeria stock market by looking at the performance of the companies listed in the market, then it will be said that the market is not truly reflective of the economic realities on ground.

Lets come to realize that the performance of any company stock is influenced by two factors, the first being the company's overall growth as regards to it's financial records and business portfolio performances.

is nigerian stock market efficient

The second being the rush order demand for it's stocks by investors as a good prospect due to either media hype or speculations. As is always the case when demand exceed supply then price rises.

Among the two scenarios with regard to the Nigeria stock market, the second being the "market Driver" as opposed to the first as relatively obtainable in more matured Western economies.

HOW EFFICIENT IS THE NIGERIAN STOCK MARKET? FURTHER EVIDENCE on JSTOR

But lets not rule out the practice of price rally or organized bidding on the floor by Brokers for sheer profiteering. All in all money is made and lost at the same time by various investors in the market and if you ask me I think that is what the stock market is all about.

is nigerian stock market efficient

So you see the Nigeria stock Market can be said to be truly efficient in its own capacity. OP, it depends on what the motive of your question is. All markets today are inefficient if based on the rational of information available to rational investors.

HOW EFFICIENT IS THE NIGERIAN STOCK MARKET? FURTHER EVIDENCE on JSTOR

However, the market is tilted to favor prudent well-informed investors, insider traders, management, etc. Now should that stop anyone from investing in the stock market?

is nigerian stock market efficient

I think not, but perhaps with some caution. The stock market, in general, is a business of risk and reward, with the caveat of knowing when to sell or exit a particular stock. I really need someone to educate me on the nse I have read Read read a lot of article but there are still some qestions on my mind Plz I will be deligted to have a stock broker or even someone who is literate In the stock market to plz be a friend and share ur rich knowledge with Me my bb pin is

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