Legal Framework for Capital Market in Nigeria
Distinction between Capital Market and Stock Market: There is sometimes seeming conflict in understanding whether the capital market is the stock market and vice versa, this work attempts to highlight the major distinctions and similarities while also covering the legal and regulatory framework for the Capital Market in Nigeria. Capital Market : A broader financial market that enables the buying and selling of long-term debt and equity securities, such as stocks, bonds, and debentures. It facilitates the mobilization of long-term funds for investment in businesses, projects, and governments. Stock Market (Equity Market) : A subset of the capital market, focused specifically on the buying and selling of company stocks (equities). Simply Put, The capital market is where companies go to raise financial capital (money) in general. The stock market is exclusively where investors trade stocks (shares of ownership in publicly traded corporations). Companies can raise money on the capital...