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Stocks and shares is one of the major sectors impacting the global community. The financial melt-
down has brought about a lot of changes in the financial institutions. Nigeria been the most
populous country in Africa and the sixth largest exporter of oil was also affected by the global
recession. This then affected the values of the shares and stocks.

Shares can be defined as the legal right to be a part of the ownership as well as have part of the
company͛s profit and to exercise any voting right attached to that share. It is also defined as the unit
of ownership of a company. Stocks, on the other hand can be defined as how companies get funded
to be stronger and expand.

I worked with a stock broken firm; we serve as agent who purchase and sell securities on a stock
exchange on behalf of clients and receive commission for this service.

The year 2002-2007 was an era of boom for the Nigerian economy. The Nigerian foreign reserved
rose to N0.2billion at the end of December 2008.

During the period, Nigerian stock market capitalization rose to a peak of N12.6 trillion in March,
2008. The boom in stock led to a rush by nearly all Nigerians to invest in stocks. This boosted the
financial sector of the economy as well as the economy at large. Investors made as high as 300%
turn over on stocks. The raising shares price encouraged people to borrow and invest, hoping that
the shares prices would further rise. The price rose above the capacity of ordinary people to
purchase shares and the stockbrokers simply lent more.

In 2008, there was a global recession which affected the stock exchange and a lot of investors lost
their money. Investors lost their confidence in the market and gradually pulled off their investment.
It took a lot of effort for us, the members of staff to persuade our clients not to sell their shares
because of the loss they would incur but look ahead at a brighter future.

The price of Firstbank shares dropped from N48-N13, Access Bank from N20-N3, Japul oil from N50-
N8 and lots more.

My Company lost a lot of money, staffs were laid-off, audit fees and other expenses could not be
paid. We are gradually bouncing back and making it through the crisis.



Financial Accounting Made Simple Vol1 by Robert O. Igben, FCA. Page 378

www.cfpe2004.org/.../the-impact-of-the-nigerian-stock-exchange-crisis-on-the-nigerian-economy

www.useconomy.about.com/.../stockandstockinvesting/.../stock_Economy.htm

Ogunbona Oluseun Oluwadara