Abstract
The capital market can be defined as an organized merger of companies with a shortage of long-term assets and companies that have a surplus of long-term assets and which wish to borrow the same while earning a profit. The subject of the research is the analysis of the capital market in Serbia with the aim of determining on the basis of relevant literature how it functions. The research was conducted based on the method of analysis. The results of the research indicate that although legislation has been passed, the capital market is not sufficiently developed. In order to enable the development of the capital market, both domestically and internationally, it is necessary to continuously adapt to the challenges and changes that prevail in the world economic trends.
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