Lesson Notes By Weeks and Term - Junior Secondary School 3

Agricultural stock exchange

Date: 13th -17th of March 2023

Class: JSS 3

Term: 2nd Term

Week: 10

Subject: Agricultural Science

Topic: Agricultural stock exchange

Duration:45 minutes

Teaching Aid: A chart

Reference Book: WABP Junior secondary Agriculture for Nigerian School 1 by Anthony Youdeowei et al

Behavioural Objectives: By the end of this topic, students should be able to

  1. Define stock exchange
  2. Mention the features and aims of stock exchange
  3. Mention the people involved in stock exchange
  4. Discuss the types of stock exchange
  5. Mention the importance of stock exchange


Step 1: Teacher revises last topic

Step 2: Teacher introduces and explains new topic

Step 3: Teacher writes note on the board

Step 4: Teacher evaluates students

Step 5: Teacher marks students' notes and give assignment



A stock exchange is an organized market where the stock broker s and traders can buy and sell stocks (also called shares), bond and other securities. It is also called capital market, stock market or share market. Buyers and sellers come together to trade during specific hours on business days. Hence a stock exchange is a medium for buyers and sellers to interact with one another.


Stock exchange is an association or organization of individuals established for the purpose of assisting, assisting, regulating and controlling buying, selling and dealing in securities.

Features of stock exchange

  1. Organized market
  2. Central government recognition
  3. Specific location
  4. Transaction carried out only through members
  5. Deals with listed securities
  6. Regulates trade in security
  7. Association of persons

Aims and Objectives of stock exchange

  1. Raising capital
  2. To facilitate trading of securities
  3. To regulate and supervise stock exchange or trading
  4. To provide facilities for trading in security


People involved in stock exchange are called stock traders, equity traders or share traders. They include stock brokers, investors, hedgers, speculators, dealers and arbitrageurs.

  1. Investor
  2. Dealers
  • Stock brokers
  1. Arbitrageurs
  2. Speculators
  3. Hedgers


The stock exchange (capital market) is divided into two types

These are Primary market and secondary market.

  1. Primary Market: this is also called new issue market (NIM) . it is a capital market where newly issued securities are offered to the public. In a primary market , transaction (buying and seliing of securities) takes place directly between the issuer and buyers or investors for the first time.

The primary market usually raises capital through the following means.

  1. Public issue
  2. Right issue
  3. Private placement
  4. Preferential allotment

Features of Primary market

  1. It is market for new , long term capital
  2. Securities are issued by the company directly to investors.
  3. The company issue certificates to investors (buyers).
  4. It is usually used for selling up new business or expanding existing ones


  1. Secondary market

This is a market where investors trade (buy and sell) securities they already own without the involvement of the company that issued the securities in the primary market. It is also called “after market” because it is where the securities issued at the primary market are bought and sold.


There are basically two types of secondary market. These are auction market band dealer market.

  1. Auction market
  2. Dealer market

Features of Secondary market

  1. It creates liquidity (means of converting security to cash)
  2. It is security market for previously issued securities
  3. It comes up after primary market
  4. Securities are not issued directly by company to investors in a secondary market.


Agricultural stock exchange is a mutual organization which is engaged in agricultural commodities such as agricultural products and machines. It is very important for a number of reasons. Some of these include the following

  1. Capital formation
  2. Savings culture
  3. Security market
  4. Investment opportunity
  5. Control of agric business
  6. Better performance

Assignment: Discuss the duty of the people involved in stock exchange

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