Lesson Notes By Weeks and Term - Senior Secondary 2

Regulation of capital market

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Term: 3rd Term

Week: 11

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Regulation of capital market

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define regulation
  2. State reasons for regulation of the capital market
  3. List types of regulations.

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on balance sheet

Students pay attention

STEP 2

EXPLANATION

She defines and states reasons for regulation of the capital market

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She lists the types of regulations

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

REGULATION OF THE CAPITAL MARKET

Regulation of the capital market refers to the rules and modalities set by the capital market to promote just and equitable principles of trade and sound business practices in accordance with global best practices.

NOTE: The capital market is regulated by the Securities and Exchange Commission (SEC), which is the apex regulatory body of the Nigerian Capital Market.

 

REASONS FOR REGULATIONS OF THE CAPITAL MARKET

The following are reasons for the regulation of the capital market:

  1. To protect investors. Investors are key element in the growth of companies and also the expansion of the company.
  2. To ensure the markets are fair, efficient and transparent. Transparency in the market will boost the confidence of investors and other players in the market.
  3. To ensure financial stability. It helps in the continuity of returns on investment and this will also enhance economic growth.
  4. To promote economic recovery and development.
  5. To reduce systematic risk. This is to ensure that investors are protected and adequately covered.

 

TYPES OF REGULATIONS

There are two types of regulations in the capital market. They are;

  1. Statutory Regulation
  2. Self Regulation.

STATUTORY REGULATION: this refers to modalities put in place by government to ensure orderliness in the capital market. These are laws created by a legislative enactment.

SELF REGULATION: It is also known as non-statutory regulation. This refers to the internal rules and guidelines set in place by the Nigerian Stock Exchange.

 

EVALUATION:            

  1. What is capital market
  2. Mention two reasons for regulation of the capital market
  3. List the types of regulations.
  4. State four functions of the capital market.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively