Abstract

The stock market, which could be seen as one of the types of securities market, is an unstructured environment in which every investor needs to understand how to invest. For a potential investor interested in shares as one of the objects of investment, it is possible to buy the shares and potentially earn despite the fact that an investment in shares is considered to be a very high-risk investment. The research aims to assess Baltic Main List stocks as an investment object in the Baltic regulated market. The research results showed that investors should assess and invest in the companies of the Baltic Main List on Nasdaq Vilnius and Nasdaq Riga if they plan to gain income from an increase in share prices and to assess and invest in the companies of the Baltic Main List on Nasdaq Tallinn and Nasdaq Riga if they plan to earn income from dividends. The author concludes that the use of an investment account has not been sufficiently popularised among individuals, which does not contribute to the development of savings culture in Latvia and in the other Baltic States. For the education of private investors and the promotion of making decisions on share purchases, it would be desirable for investors to offer summarised information on company shares and their characteristics on the Nasdaq website. The research employed general quantitative and qualitative methods for economic research, including comparative analysis and synthesis, statistical analysis and graphic analysis.

Highlights

  • In the financial world, investment in shares is considered a very highrisk investment (Pelane, 2015), and a stock market is an unstructured environment in which every investor needs to understand how to invest (Spriņģis, 2016)

  • The author concludes that the investors who expect to gain from stock price increases should assess and invest in the companies of the Baltic Main List quoted on Nasdaq Vilnius

  • Shareholders received the highest dividends from JSC Merko Ehitus; JSC EfTEN Real Estate Fund III had the highest earnings per share (EPS), while JSC Silvano Fashion Group had the highest dividend yield

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Summary

Introduction

Investment in shares is considered a very highrisk investment (Pelane, 2015), and a stock market is an unstructured environment in which every investor needs to understand how to invest (Spriņģis, 2016). The author concludes that in the period 2014-2018 in the Baltic regulated stock market, the stock prices of Baltic Main List companies quoted on Nasdaq Vilnius increased the most. The author concludes that the investors who expect to gain from stock price increases should assess and invest in the companies of the Baltic Main List quoted on Nasdaq Vilnius. The author identified the dividends paid by the companies of the Baltic Main List in the Baltic regulated market in 2018 as an initial prerequisite for assessing investment in stocks (Table 2). The share prices of JSC Grindeks increased the most in JanuarySeptember 2019, which was determined by the dividends paid by this company that were the highest for the Baltic Main List in the Baltic States until the end of Septermber 2019, at EUR 1.28 per share. In the author’s opinion, it would be desirable for investors to offer summarised information on company stocks and their characteristics to educate private investors and to facilitate their decision-making on the purchase of stocks

Conclusions and suggestions
Findings
54 Latgale National economy research
Full Text
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