ABSTRACT

This research work was embarked upon with a view to determine the impact of the financial (economic) meltdown on the Nigeria capital market (1990-2016). The capital market was set up to achieve specific objectives which would boost the economy such as encourage domestic insider trading and shareholders and increasing the quantity and quality of investments. The capital market offers access to a variety of financial instruments which are very essential for government and other institutions in need of long term funds. The data was obtained from the CBN Statistical Bulletin (1990 – 2016) and analyzed using ordinary least square analysis. The result shows that share prices and insider trading has a positive and significant impact on the capital market. Improvement in the declining market capitalization by encouraging more foreign investors to participate in the market, maintain state of the art technology like automated trading and settlement practice, electronic fund clearance and eliminate physical transfer of shares was recommended.