Last - but not really least - may be the existence of a good, translucent and non-corrupt marketplace. The stock trade, the banks, the regulatory authorities, the police and the courts have to be over suspicion. For the marketplace to be entirely successful - it should be completely free of any ulterior considerations and motives. Crime distorts the market's allocative elements and powers. It is easily real in transactions in the stock change for many to see. An investment exchange is, after all, the showcase of the local economy.
But there is a problem which towers most importantly different problems and it is almost endemic to Macedonia. It can help to explain a lot of the scenario of the stock trade in Skopje. It's the truth that the marketplace is missing its most critical person: the Government.
Investors - both foreign and domestic - search for the Government to be effective in the local stock exchange. Governments across the world use their stock transactions to market shares of state-owned enterprises for their populace. The inventory exchange becomes a mechanism for the circulation of the national wealth - as embodied by the state owned enterprises - to any or all the citizens. As we said before, governments also utilize the stock exchange to access income from their citizens.
Therefore, if it doesn't operate in the stock exchange - it proves that it generally does not believe in it. If the government does not believe in the stock trade in its state - why if the investors rely on it? There are always a several additional structural features which are regarded as the hallmarks of a wholesome inventory richard touil. But these are the by-products of all previously listed conditions.
A stock change must certanly be water to ensure that investors might manage to convert their gives in to cash quickly and expediently. It should include many expense possibilities - professionally set, it must be diversified. This may permit the investors to pick from many different investments and also to reduce their dangers by splitting their money among several types of investments.
The administration of the stock trade can help it to by presenting efficient trading techniques, electronic trading and settlement techniques and so on. The quicker investors meet their money when they sell their shares - the more they will be prepared to work in the inventory change which allows them that. The simpler it is in order for them to liquidate their resources by meeting customers - the more they'll choose to function in that inventory exchange.
