THE CAPITAL MARKET MATTERS - THE EXPERIENCE OF THE GRAND DUCHY

The Bulgarian capital market is not founding its place in the national economy for more than 30 years, and the market infrastructure is far from world standards, at least as far as the central depository is concerned. The government is a major shareholder in CD (Central Depository) and BSE (Bulgarian Stock Exchange) and is not doing enough for their development and integration. The state is also absent as a factor in the development of securities trading. The example of Luxembourg shows that the capital market can be a driver of the national economy and a factor for growth, which is why it should be recognized. The stated goal of the research also sets the limitations in the present study - it is an overview and uses a comparative analysis of indicators for economic development and trading in financial instruments. The analysis shows that government guidance of capital market development can become a major factor for remarkable growth, and this can be achieved by small economies as well.