Lesson Notes By Weeks and Term - Senior Secondary 3

Regulatory agencies of the financial markets

Get it on Google Play
Get it on the Apple App Store
  1. Home
  2. Lesson Notes By Weeks and Term
  3. Senior Secondary 3
  4. Regulatory agencies of the financial markets

Term: 1st Term

Week: 8

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Regulatory agencies of the financial markets

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

  1. State the objectives of regulating capital markets.
  2. List the tools/instruments used in capital markets.
  3. State the significance of the agencies in the economy

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 money Market

Students pay attention

STEP 2

EXPLANATION

She discusses the agencies that regulate the capital markets. She further states the objectives of these agencies

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She states the tools/instruments used in the capital market. She also states the significance of the agencies in the economy

 

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

CAPITAL MARKET
Funds are needed by entrepreneur, government and business firm on a long term basis.
Money market cannot provide these needed funds. Hence Capital Market bridges this gap.

Capital Market is a market where long term securities are traded.

INSTRUMENTS USED IN CAPITAL MARKET

Securities such as shares, stocks, development stock, bond, debenture
A. Share- is a unit of capital measured by a sum of money which is an individual portion of the company’s capital owned by a shareholder. It is a means of raising long-term loans for company through the Stock Exchange Market.
B. Stock- is the bundle of shares or mass capital which can be transferred in fractional amounts. Stocks are always fully paid, for example stocks can be quoted per N100 nominal value. They are collections of shares into a bundle. Stocks are not issued but converted from share issued.
C. Development Stock- is a debt instrument through which governments get long-term loans or borrowing for a period of up to five years and above.
D. Bond- is an interest bearing or discounted government or corporate security that obliges the issuers to pay the bondholder a specified sum of money annually at specific intervals and to repay the principal amount of the loan at maturity.
E. Debenture- is an instrument or a loan certificate for raising a long-term loan from the public by a limited company. A debenture is a debt and a debenture holder is not a co-owner of the business but a creditor.

INSTITUTIONS INVOLVED IN CAPITAL MARKET
i. Issuing houses
ii. Insurance companies
iii. Development Banks
iv. Building Societies
v. National Provident Fund (NPF)
vi. Stock Exchange
FUNCTIONS OF CAPITAL MARKET

  1. Capital market provides long term loan purpose of investment.
  2. Capital market serves a forumthrough which public sector takes part in running of the economy.
  3. Capital market helps to mobilize savings for investment purpose.
  4. It provides means through which merchant banks can grow and develop.
  5. It gives opportunity to the general public to participate in the running of the economy of the country.

 

EVALUATION

  1. Define capital market
  2. Discuss three agencies that regulate the capital markets
  3. State and explain three instruments used in the capital market
  4. State four functions of the capital market

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively