The role of Securities and Exchange Commission (S.E.C.) in public issue of securities and the structure of the Nigerian capital market
Securities are intangible goods, which are incapable of physical evaluation. Therefore, in order to assist investors in deciding whether to invest or not to invest in any security, the Securities and Exchange Commission requires that important information concerning the issuer and the securities must be provided to the investing public. This requirement is important because investors need to be protected against issuers who may easily take advantage of investors, where correct and timely information are not disclosed. The function of the Securities and Exchange Commission is to regulate investment and securities business in Nigeria. Investment and securities business in Nigeria is carried out in the capital market. The capital market plays very important role in the development of any economy. As a place where the wealth of a nation can be bought and sold, its role in accelerating the socio-economic well-being of citizens of any country and also the economic growth of a nation leaves no doubt as to its importance in nation building. To appreciate this, it will be appropriate to understand the role of Securities and Exchange Commission (S.E.C.) in public issues of securities and the structure of the Nigerian capital market.
Keywords: Securities, Capital Market, Public Issues, Companies, Investment, Stock