Abstract:
This study/research was necessitated owing to the recent financial crisis that enveloped the globe, commonly referred to as the global credit crunch. This crisis came about as a result of mismanagement of mortgaged that were made available to the masses abroad specifically the United States of America. The crisis has its root in a banking practice called sub-prime lending or supreme mortgage. Even when Banks got to realize that there was fire on the mountain, they were shy to admit it because they were scared of being undervalued. Like a wild fire, the whole globe was enveloped in the crisis. The researcher made use of secondary data, as many people had views that varied on the topic or issue. The research went a long way to show to what extent the meltdown affected the stock market capitalization and GDP of Nigeria during the specified period namely-March 2008 to February 2009, in doing this the researcher employed the technique namely regression and correlation analysis. From the study we came to see how adversely the stock market capitalization was affected whereas the GDP was not affected as such. More details are seen in the body of the research work.
