Merger and Acquisition decisions are about timing, opportunity, and decision. In the business world,
 these three words are partially influenced by the strength of the stock market. The timing is when the
 stock market is highly valued which results in high stock valuation, after that is the opportunity which
 means to find a target or if an existing target has lower stock valuation and finally comes the decision to
 make whether to use cash or equity for the transaction. Since companies can use its stock as leverage to
 acquire companies, a highly valued market gives the companies the resource with which to make purchases.
 Therefore, the question arises whether the stock market influences the decision for companies
 to engage in M&A transactions. This question is addressed in this study using a relatively large panel
 data of M&A activity for the period 2008-2017. The econometric tool used in this study is regression
 analysis. The measurement that this study used to value the stock market is by measuring the stock
 market capitalization to GDP ratio of a country. The results displayed that the stock market to GDP ratio
 is statistically significant at 5% risk on the M&A activity and with a 1% increase in the stock market
 we expect a 0.1729% increase in the M&A activity. Additionally, the paper suggests the development of
 a regression model that can measure the FDI inflows in Albania, and this is achieved by adjusting the
 regression model variables in order to become more suitable for its economy.