Analysis of knowledge about capital market activities in Republic of Macedonia

Abstract

Capital market represents the most important and influential segment in the economic policy and practice, with which successful and long-lasting functioning of the complete economical system is realized. Namely, this market offers many possibilities for mobilizing necessary financial resources for financing current and developing work of business entities, and on the other hand, it gives wide choice to the investors for investing free financial resources. Namely, the establishment of a successful stock market in a developing economy can be a major source of economic growth if it provides development finance by channeling domestic savings and attracting foreign investment. However, this objective is not always met, particularly in very small markets where there are barriers to efficient market operations. In that context, the main objective of this research is to analyze the current status of the Macedonian Capital Market (Macedonian Stock Exchange - MSE), the extent of knowledge about Macedonian Stock Exchange as a most important part of the capital market and the sources that promote knowledge about capital market (stock market) activities, also to identify the variables affect the investor's opinion to invest in MSE. In R. Macedonia, the capital market is not developed enough yet, that has a negative influence on business entities financing, and all that affects economic growth and development. Namely, the research carried out in this study has shown that public awareness for the existence and effective functioning of the capital market in the Republic of Macedonia is on a very low level. Altogether, it is observed that there is a long way to go for stock market operations in the Republic of Macedonia but need to get a powerful startup with a very dedicated, investment awareness campaign. The best model of development for Macedonian Stock Exchange is based on the active participation of stock exchange, government and companies inviting investors and creating confidence for secured investment.