The Role of Stock Exchange in Fostering Development

Developments in the infrastructure of the Georgian stock exchange market are to be finalized in September 2018. Approximately GEL 2.5 million investment was made to implement and develop a new stock exchange system, allowing various and new operations to be made. In order to further improve the Stock Exchange, it is vital to increase the number of public company shares. Following the implementation of the updated system, it will be possible to trade state bonds and borrow securities. 

Fostering Georgian stock exchange market is vital to businesses as this will allow companies to attract foreign investment. It provides means of raising capital for investment, which consequently enhances economic activity. Moreover, the role of the stock market can affect changes in corporate governance as good management skills are scarce in the developing country.

By Anna Zhvania