1.0 INTRODUCTION The financial market is where funds are transferred from surplus units to deficit units.

The financial market environment can be classified into households, businesses and government agencies. This trade environment is created by lenders or savers of funds, who have excess money at their disposal also referred to as surplus units and borrowers of funds, who are short and in need of funds also referred to as deficit units. A financial market according Brealey etal (2004) is a market in which financial assets such as shares and bonds can be bought or sold. For the purpose of this research, the study on the financial market is focused on the capital markets where securities traded have a life of at least one year. Eugene Fama, first introduced the term efficient markets and hence can be described as the father of the efficient markets theory. He stated that, An efficient market is defined as a market where there are large numbers of rational, profit-maximizers actively competing, with each trying to predict future market values of individual securities, and where important current information is almost freely available to all participants. An efficient market is a market that is efficient in processing information. Efficiency of financial markets is the theory that portrays the notion that financial markets are perfect and information about securities is continuously and freely available to market participants and the general public. Investors are generally driven by expectations for the highest returns available while trying to avoid risks. The type of efficiency under review in this research is the efficiency of information which is the extent to which information is disseminated and accessed by market participants and actually reflected in prices of securities. The market is considered to be efficient if the prices of all the investments fully reflect all available information about the investments. ( Fama, Eugene F., 1965, Random walks in stock market prices. )
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There are three different versions 1.1 BACKGROUND OF THE FINANCIAL MARKETS IN GHANA

The financial markets history dates to as far back as the colonial era in 1953 when the Bank of the Gold Coast, now the Ghana Commercial Bank was established. In 1961 the Exchange Control Act which puts the inflow and outflow of foreign exchange under Bank of Ghana regulation was promulgated. In 1985 Financial Institutions Sector Adjustment Program (FINSAP) was launched. The main objectives were to improve deposit mobilization and increase efficiency in credit allocation and develop money and securities markets. A weekly foreign exchange auction system was introduced in 1986. A two-tier exchange rate system was also adopted. The window 1 rate was fixed at 90/us$ while the window 2 rate was determined at the weekly foreign exchange auction. Weekly auction of Treasury Bills introduced in 1987. The two foreign exchange windows were unified later in 1988. Window 1 was abolished and the marginal rate established at the weekly auction became the rate for transactions for the week. Bank of Ghana could now authorize dealers other than banks to set up Bureaux de Change to buy and sell currency. Banking Law PNDCL 225 passed in August 1989. The law covered capital adequacy, reserve requirements, loan limits and reporting requirements. The new banking law strengthened the Bank of Ghanas supervisory role, including periodic on-site examination of banks, regular standard reporting, issuance of new accounting standards, audit guidelines and authority to impose fines and punitive actions in case of violations. Later in December, Nonrediscountable, medium-term Bank of Ghana instruments for banks with 180 day, 1 year and 2 year maturities were introduced. Bank of Ghana notice BG/GOV/SEC/95/29 11/12/95 Remedial measures at GSE was issued. Foreigners participation in listed stocks permitted after the stock has been offered to the Ghanaian public for three consecutive days.
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PROBLEM STATEMENT RESEARCH QUESTION OBJECTIVES LITERATURE REVIEW RESEARCH METHODOLOGY

1.6.1 TYPES OF DATA 1.6.2 PRIMARY DATA 1.6.3 SECONDARY DATA 1.6.4 DATA ANALYSIS METHOD The following techniques will be adopted to analyse the various types of data selected for the study. Percentage frequency tables will be used for the analysis of quantitative data involving one or two items. The Microsoft Excel Application will be used in drawing tables for the analysis.

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SIGNIFICANCE OF STUDY

The research will be of benefit to the researchers, the general public, investors (both existing and prospective), financial institutions and government.

RESEARCHER

The research will help the researchers to gain general knowledge in taxation and help improve the practical experience in research work. It will also serve as a foundation for other research work to be undertaken.

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PUBLIC TAXPAYERS

This research will help educate taxpayers on the need to pay their taxes. Also there is that notion where people do not understand how tax could be used as a means of generating revenue for development. In view of this the research could be used as a means of educating the public in accepting direct tax as a source of government revenue for development.

GOVERNMENT

It is often said that tax revenue is the oil that lubricates the engine of government business. Therefore this research will help government generate more revenue to finance its projects.

GHANA REVENUE AUTHORITY (GRA)

As the vision of the GRA is to excel as an effective Tax Administration Agency in Ghana and Africa as a whole, the research will help GRA develop strategies to address the loopholes in the direct tax administration system which will help mobilize more revenue.

The study will increase the understanding of accounting services available to SMEs, their willingness to patronize such services and the impact on their business which will be beneficial in diverse ways to SME owner-managers, managements of institutions, policy formulators, researchers, students and practitioners.

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ORGANISATION OF STUDY The study will be organised into five (5) chapters. Chapter one : Chapter two : Chapter three : this study Chapter four : Chapter five the study : Focus on results Summary, conclusion and recommendations from the findings of The introduction of the study The literature review of this paper The research methodology used in soliciting for information for

REFERENCES

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