e-sRC

CHAPTER ONE: INTRODUCTION
1.0 GENERAL BACKGROUND OF THE STUDY
Today’s forty-five years after the financial market has witnessed a tremendous
growth in terms of asset, physical expansion, range of securities, style and scope of
operation. One can think of an environment as the setting within which this occur, the
framework which influences and is in turn modified by what occur by providing
incentives throwing up challenges, creating obstacles and offering opportunities,
view in this light the information technology is obviously shaped the nature and
structure of the capital market.
The physical expansion is the system bred stiff competition and the unfolding
rat race, survival instinct is bringing out the best of every investor. The range of new
securities and operations is now very vest and investors are being elevated to the
level of profundity. The most striking development as the competitive environment
becomes more intensive is office automation via the computer technology, which has
reduced today’s operational processes to a function of what they used to be.
Gradually more people are becoming receptive to the European trend where by retail
business is developed with the necessity of substantial branch network, it is believed
in some quarters that may be closure of branches in favour of electronic substituted.
The role of information technology and communication in concluding
securities transaction is obvious. Technology when properly harnessed is a powerful
tool improving efficiency and competitiveness in security market, to conserve this,
information is very important, therefore, the link between information technology
and security market is brought into sharp focus when one compares the developed
country situation. According to Bankers trust vision, advance in information
technology and electronic communication are so rapid in occurrences that many of
the task now undertaken by financial intermediaries such as rapid security trading,
research analysts e.t.c. will be done automatic by computers. One of the most resent
and perhaps most functional to investors are the propose of online security trading
system by many stock exchange market in Nigeria.
1.1 STATEMENT OF PROBLEMS
The main problem of these research works is to identify the influence and
implication of information technology in the Nigeria Security market. Technological
instrument that when utilizes will bust the market efficiency, but the problems are as
follows:
(a) Most or our investor do not use some of those modern technological
investment, these could be as a result of lack of awareness of either existence
for the portfolio analysis.
(b) In Nigeria a mere or less family business cannot make use of the modern
technological machine for more information about the security transaction in
the financial market, because most of the private companies sale and buy their
securities outside the security market.
(c) Absence of good and modern technology system (communication facilities)
also hinder the efficiency of the security market, because investors only
patronize the market when the securities are listed n the newspapers and other
financial institution for advertisement.
(d) Security market are yet to fully developed a marketing management system,
which allows for coherent coordination of the activities of the entire activities
involved.
(e) Most of the people do not seem to appreciate the idea while a lot more fine no
satisfaction un the whole concept and as much do not see anything of interest
therein. As a result, the security market is saddle with problems of proper
coordination of the entire activities and the result translated into poor
transaction due to the vandalization of most installation and equipment.
(f) Low rate of return on investment also contribute to the security efficiency
problems, because the number of security quoted in the market will not return
even the cost of modern machine installation.
Information technology have a lot of advantages, therefore the research work
is attempt to explore in to the possible areas of developing efficient market and result
oriented in modern marketing system and techniques aimed primarily at improving
the general transaction and services, and above all creating much needed awareness
those will go along way in serving as antedoted to some of the problems just
mentioned