CONTINUOUS FALL OF BELGRADE STOCK EXCHANGE AS A RESULT OF LACK OF QUALITY COMPANIES IN SERBIA

Abstract

All developed Western countries rest on the market economy in the presence of the stock market and the free flow of capital, unlike Serbia, where such rules do not prevail and where the liquidity almost dried off at the stock exchange, while securities (shares) were reduced to a miserable level for which there would be enough only a few brokerage houses. Smaller broker companies have long since left their jobs due to lack of work, surviving probably the biggest crisis since the stock market in Serbia exists. Price indices record unsuspecting records reaching their historical minimums. Low liquidity, along with the debatable quality of investment alternatives, left Serbia's market essentially beyond the reach of global investors, and domestic specifics did not stimulate the status of stock exchange operations in Serbia. The Belgrade Stock Exchange has a tendency for years to fall in terms of turnover, realized stock exchange index and stock prices. However, it is difficult to expect that the stock market will develop itself in a non-market environment, and much of the responsibility lies with the state that has not at least promoted shareholder and stock exchange operations. Companies are increasingly withdrawing from the Belgrade Stock Exchange, primarily due to the fact that they have come to this market through legal coercion and have failed to take advantage of the capital markets, such as raising capital, improving management efficiency, strengthening the image. The results of this study show that the yields of almost all of the shares are highly dependent on the yield on the market, that is, the linear correlation coefficients between yields on the shares and market rates of return are positive, that non-banking corporations generate higher beta coefficients than banks, that is, they are more sensitive than banks on the changes and that they can make returns on the basis of beta coefficients, and that the actions of non-banking corporations are offensive, and the actions of banks are defensive. Solutions to the problem could be in: the need of the state to sell all public companies and public companies to appear on the stock exchange, that the public offering of sales is implemented on the Belgrade Stock Exchange, for example, shares, still some quality companies that are not yet quoted on that the existing shareholders (owners) of different types of companies (mostly, d.o.o.) and new founders are increasingly suggesting the founding of joint stock companies as the most suitable form of companies for the collection of capital, and ultimately, the suggestion to the Government and the State Assembly would be that future regulation, all companies that receive ownership of the privatization of state-owned enterprises make it impossible to abandon shareholding or to determine the conditions that will force them to give up such intentions.