ABSTRACT

Every nation has a craving for development and increase. This is a silent trigger that has been pulled, though unannounced yet everyone runs towards the direction. This is made more evident with the day by day grading systems applied to know and judge nations and how well they are doing. Thus no nation will want to neglect any cardinal sector of its economy which will make it have a say in the world table. The Nigerian Stock Exchange is a pivot in the economic stability of the nation thus it is one important facet of the economy that has a role to play in national and economic development. This study examines the relationships between stock market capitalization rate and interest rate, linking it to the economic development of the nation. Nigerian Stock Exchange (NSE) results were analyzed using regression. It is obvious that interest rate exerts influence bank stock market capitalization rate. Government development stock rate exerts influence on stock market capitalization rate and prevailing interest rate exerts influence on government development stock rate. The study further revealed information as very important to capital market development. It was therefore recommended that the operators of the Nigeria capital market should raise the level of awareness so that investors will be abreast with the happenings in the market.