A stock exchange is an organized market where large and small investors alike but and sell through stock brokers. The stocks and shares of companies and government, agencies stock exchange is an institution that provides the facilities that enables both companies and government to raise long term and medium term funds for the establishment, expansion and development of projects through investors. It is really an organized market for already existing security (bounds, stocks and shares) rather than few new issues. Securities of varying types are traded openly on floor of the exchange and through this means, the institution serve as an efficient vehicle for the allocation of available, capital funds to the diverse uses within an economy.The application of the computer technology in stock exchange market is believed to faster a dramatic advancement in the mode of operation of the market since speed, accuracy and efficiency remains the Hallmark of the computer technology more so in the next millennium when the application of the computer in every human endeavour will become a condition sine qua non.
1.1 STATEMENT OF PROBLEM
In spite of the remarkable progress fostered by the stock exchange institution in relation to the economic and social development of the countries that initiate its services, it’s advancement have been hampered as a result of the following factors which have become the bone of the spanner.
(a) Paucity of shares to buy on the market and trade in i.e. low volume of securities
(b) The “buy-bond-hold” attitude of Nigeria investors.
(c) Infrastructural deficiencies resulting in delays in obtaining share certificates, dividend warrants e.t.c.
(d) The low level of public awareness as to the benefits derivable from the operation of the capital market
(e) Inadequate legal framework.
1.2 PURPOSE OF STUDY
The relevance of this study is to check the anomaly associated with the stock exchange dealings in Nigeria since it’s institution provided transaction is being carried out by man and recordings of the daily transaction and mode of operation done by him, irregularities are bound to be associated which may be as a result of business share prejudice or even undue manipulation of date in favour of a selfish interest at the expense of the investors or the establishments, which are the primary beneficiaries of the invested, capital funds.
If these checks and balances are effectively carried out since the aid of the computer stands better chance of accomplishing that, the stock exchange dealings will prove to the world that it is the best avenue of channeling capital investment which will in turn curb the inflationary possibilities of our economy, finance our recurrent budget benefit and improve the balance of payment position of the country.
1.3 AIMS AND OBJECTIVES
The basic aims and objective of this project work are as follows.
1. To eliminate all forms of fraudulent activities associated with the stock exchange market.
2. To ensure that timely and accurate information about transactions on the floor gets to the marketers.
3. To eradicate all the difficulties encountered by recording and storage of data which are being done manually.
4. To encourage easy access to the information about the market.
5. To facilitate increment in the volume of shares available in the market by discouraging the share-box attitude of Nigeria investors.
1.4 SCOPE OF THE STUDY
This project work is only limited to operations of the stock market in relation to the services they render to both government establishment and companies by ensuring that the shares within their Jurisdiction are adequately sole to the public who constitution the potential investors in accordance to pre-defined rules and regulation. It also incorporate the effective reallocation of shares from existing shareholders to other interested investors is not left out in this piece of work. It also includes a proper updating of the daily transaction on the floor to keep customers a breast with the development on the floor as a guide against frauds and irregularities.
Life is full of impediments which stand as challenges to every human endeavour thus this project work is not an exception as a number of constraints are associated to it, but it must not be forgotten that without challenges. Changes which give room to great height remain illusive. Among a number of eliminations to this are the following:
(i) Time: The time stipulated for the completion of this work is not commensurate to the task capacity as a lot is required to give this work a benefiting look.
(ii) Finance: The financial requirement for the successful completion of this project is inadequate. Some software and hardware resources that should have been bought at least for a hypothetical test of this work was constricted.
(iii) Inadequate information provision: A lot of methods were in-cooperated to get an apparent information of the stock market to enhance an ideal work but the personalities and materials in position to offer help were lacking.
1. The investor is literate up to the point of knowing of the features of the computer and it’s mode of operation and comprehension of it’s outputs.
2. The investor has a bank account in at least one of the popular bank in Nigeria.
3. The tock holding farm(s) is/are registered in the Nigerian capital market are responsible or reliable to a reasonable extent. The stockholding firm has a microcomputer work stations and terminals connected to minicomputer mainframes in a telecommunication network.