REZULTATI TRANZICIJE NA TRŽIŠNU PRIVREDU, SA OSVRTOM NA BOSNU I HERCEGOVINU
RESULTS OF THE TRANSITION TO THE MARKET ECONOMY, WITH REFERENCE TO BOSNIA AND HERZEGOVINA

Summary/Abstract: Transition is a process of building market economies that requires the creation of markets, market-oriented companies and financial institutions so that competitive interactions between oriented companies and consumers direct production and investment decisions.Companies in the growth and development phase do not have enough capital to finance the intended investment projects. The establishment of capital markets in transition countries meant, among other things, the privatization of former state - owned banks and the creation of opportunities for the establishment of completely new, private, as well as the construction of new financial institutions that are not inherent in socialist socio - economic relations. In countries in transition, the capital market is a necessary product of the transition process which is not an end in itself, but which, together with other economic mechanisms, should in some way justify the readiness of the former socialist countries to approach the transition.The establishment, development and efficient functioning of the financial market, including the capital market, represent a particularly important precondition for completing the economic transition. However, the financial system of all countries in transition in the former Yugoslavia is still characterized by the dominance of the banking sector, as opposed to the money market and the capital market. The main characteristics of the capital market in RS are: short list of shares that are on constant trading, low liquidity of shares, small turnover and small number of transactions, limited number of types of securities, distrust in securities and short period of market operations.

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