• Janka Dimitrova
  • Olivera Gjorgieva Trajkovska
  • Emilija Miteva Kacarski


Practical experiences in developed market economies show that the existence of a market economy is impossible without the presence of a developed capital market. The role of this market is of great importance because it enables, above all, an increase in the level of efficient and effective utilization of resources and their allocation, increases domestic financial savings, affects the expansion of ownership, the international movement of capital, and the increase of the number of services offered by financial institutions. The process of investing in the capital market depends on the political situation in the country and the movement of the economy globally. In countries where there is an unstable political situation, the stock exchange’s operation is declining, unlike stable political countries, where stock exchange’s operations are continuing. The stock exchange is a mirror and barometer of general developments in society. The economic crisis that hit the world in 2008 has triggered the strongest negative impact on the capital markets, both on volume trading, as well as the prices of securities. Securities prices skyrocketed overnight. Stock indices as well. In most cases, there were absurd situations where, although companies showed good financial results and had prospective investment ventures, stock prices fell due to the euphoric panic fear that engulfed investors not to lose their investment, so they looked to grab the last chance to save what can be saved.
Taking into account the attractiveness and importance of the title of the paper, the research will focus on identifying:  the role and significance of the capital market,  capital market functions, as well as  retrospective of the functioning of the capital market in the countries of former Yugoslavia (Macedonia, Serbia, Montenegro, Bosnia and Herzegovina, Croatia and Slovenia), in the last 10 years, i.e. from 2007 to 2016, with an empirical research
and analysis (the period of the stock exchange boom in 2007, the period of the last financial crisis in 2008 and the post-crisis recovery period in the former Yugoslav countries) and  to identify the capital market development perspectives in these countries.

Dec 27, 2017
How to Cite
DIMITROVA, Janka; TRAJKOVSKA, Olivera Gjorgieva; KACARSKI, Emilija Miteva. THE CAPITAL MARKET FUNCTIONING IN THE COUNTRIES OF FORMER YUGOSLAVIA IN THE PERIOD 2007 - 2016. Journal of Economics, [S.l.], v. 2, n. 2, p. 14 - 27, dec. 2017. ISSN 1857-9973. Available at: <>. Date accessed: 16 jan. 2018.
Economics (Microeconomics, Macroeconomics, International Economics)