THE NIGERIAN CAPITAL MARKET

Capital markets provide funds to industries and governments to meet their medium and long-term capital requirements, such as financing of fixed investments like buildings, plants and machinery, it mobilize long-term capital efficiently by attracting resources from a large number of savers in a cost-efficient manner and by converting the funds of short-term investors into long-term capital.A capital market is the financial market where long term securities are bought and sold.

THE INTRODUCTION OF LIABILITY COMPANIES

The shareholders of companies hold liabilities to the company. In simple terms they share the liabilities arising from the companys’ activities. However, it was assumed without formal provision that the liability of shareholders in the earliest chartered companies was limited to the amount of their subscribed contributions, but then in the Ham borough Company case,[1]

THE EVOLUTION OF COMPANY

The development of the company was also influenced by the discovery of wider world. The growth of merchant adventurers and the need to attract resources to finance the adventures into the unknown world for purposes of discovery and trade also contributed immensely to the development of companies.[1] In fact as noted by Gower[2] the name ‘company’ was first applied and adopted by the merchant adventurers.

THE EVOLUTION OF CORPORATE FORM OF INVESTMENT

A corporation is a firm with special legal attributes that make it capable, among other things, of owning property, entering into contracts, and standing in court independently of the individuals behind it, such as owners, managers and employees.[1]