The Capital Market and Its Challenges in the Albanian Economy

The capital market is part of the country's financial market and includes the buying and selling of shares, bonds, and investments in other financial instruments. The capital market is a key component of a country's economic development and provides opportunities for investors to buy shares in companies and diversify their portfolios. Three decades after Albania embraced capitalism, the stock market, or capital market, is one of the most unknown tools for its economy. Today, almost all money circulates in cash; businesses only use banks to request loans. The capital market is poorly developed, even though the first attempts to create a stock exchange date back to 1996. The capital market is dominated by the primary market of government securities and other segments, such as the secondary market, investment funds and voluntary pension funds, that still have a moderate performance, which means that the unused potential remains high. The development of capital markets is very important as it is a fundamental means of ensuring macroeconomic stability, reducing volatility of interest rates or exchange rates. This study helps to develop knowledge and ways to manage and invest successfully in the capital market.