WAEC Commerce 1992 Theory question 106

(a) The Second-Tier Securities Market (SSM), set up by the Nigerian Stock Exchange in 1985, is a section of the Stock Exchange where small and medium-sized companies that cannot meet the strict listing requirements of the main (first-tier) market can raise capital and have their shares quoted, under easier conditions (e.g. lower minimum capital, fewer years of track record, smaller share of capital offered to the public, lower fees).
(b) Justification: enables small and medium firms to raise long-term capital; helps indigenous businesses grow and become public companies; widens share ownership among Nigerians; provides a market where their shares can be bought and sold; improves the firms' image and credibility; encourages saving and investment; supports economic growth and employment; prepares firms to move later to the first-tier market.

Contrast with the main (first-tier) market.