Stock exchange influence in promotion of capital market in Bosnia and Herzegovina: SASE case

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Stock exchange influence in promotion of capital market in Bosnia and Herzegovina: SASE case


Fahrudin , Malanovic


Economic efficiency and well being of one country is somehow connected with the efficiency and effectiveness of stock exchange, so the main purpose of this study is to show and explain workings of capital market in Bosnia and Herzegovina through activities of Sarajevo Stock Exchange. The reason for this analysis is fact that the stock exchange performs important, if not key, role in one nation’s economy since it provides investment opportunities by offering buyers and seller’s places for trading securities, such as stocks and bonds. Such investment opportunities are ways for corporations, governments, and business to obtain funds necessary for expanding business or financing publicly good project. Another reason for this analysis is the lack of awareness about importance of stock exchange even if performance of stock exchanges affects everybody starting from individuals to large corporations to governments. Taking into consideration the fact that the stock exchange is an organized place for trading goods, securities, financial derivatives…etc, whose daily volume is measured in billions of dollars, it can be easily concluded that importance of it is huge. This work is mentioning direct and indirect effects of stock exchange activity on an economy, proving great impact on daily activity, not only of business, but of people as well. This study also indicates that highly developed nations are closely related to the high level of activity of stock exchanges and see stock exchange, as a component of capital market, a key factor to success. Simply, stock exchange is as important as other public goods. Less developed nations are not necessarily related to the poor performance of stock exchanges; however, it could also be a main reason for those nations to be considered as a less developed. All in all, nothing can change the fact that stock exchange creates our destiny regarding our future job orientation, since companies and corporations find stock exchange one of the easiest ways to obtain money to finance their activities. Also, nothing can change the fact that the whole global economy, including economy of Bosnia and Herzegovina is dependent on those biggest stock exchanges around the world where the most important one is the New York Stock Exchange. This work is divided into three chapters. Section 1 deal with stock exchange and stock market in general. When it comes to Section 2, it deals with stock exchanges in Bosnia and Herzegovina, while Section 3 is actually conclusion part of this work.Keywords: stock exchange, capital market, security, stock, bond


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