ABSTRACT

This study has attempted to investigate the effect of capital market on investment in Nigeria using the OLS technique to estimate this relationship covering a period of 34 years (1981-2014). It was discovered that for the period under study that market capitalization and inflation had no significant effect with investment however the turnover ratio and value traded ratio are significantly related to investment under the time of observation and also the capital market has a significant effect on investment in Nigeria. It was thus recommended that for improved investment level the country the government and relevant authorities should ensure appropriate and adequate sensitization of investors to invest in the Nigerian Capital Market to provide funds for companies listed on the stock market to have funds to expand and make further investment.