Capital market – theoretical and practical approaches

The book „Capital market – theoretical and practical approaches” provides a cohesive material for all those who study the complex issues of the capital market or wish to be informed about the trading in financial instruments on the stock exchange. The capital market, an fundamental component of a functioning economy, through the mechanisms linking the supply and demand of capital, is the non-inflationary financing of any economy.

Financial instruments serve to investment purposes and to the hedging of the risk of loss of value of a securities portfolio. The stock exchange is the organized and regulated venue for trading all types of financial instruments, from primary securities to increasingly sophisticated derivatives. The Bucharest stock Exchange, which was re-established in 1995, has completed all the steps required by the European Union primary and secondary legislation for the trading venues. The progress made has enabled the switch from frontier to emerging market status in 2020. Now, the Bucharest Stock Exchange functions as a spot market, but once the Central Counterparty (CCP.RO Bucharest SA) will become operational, the derivatives market will be lunched.