Comparative Evolution of Romanian Capital Market and Other Central and East-European Markets

In the context of Central and East-European stock exchanges, Romanian Stock Exchange, considered to be a frontier one, distinguishes itself through: reduced dimensions, undeveloped activity, both qualitative and quantitative, low stock exchange capitalization and transparency level as well as corporative governance level under the one of the main European markets. In an instable economic zone, such as Euro zone, investors prefer the developed financial markets, where powerful companies are listed with decent liquidity and high rate of capitalization which does not bring Romanian stock exchange market to our investor’s attention. But, frontier capital markets with a high growth potential offers international investors the possibility of portfolios diversification so that, when facing crisis situations, they are interested mostly in placing their capital in less developed markets. This paper mainly deals with the evolution of the main stock exchange indicators during 2007-2012 and, secondly, it pinpoints both the lacks of the domestic stock exchange market as well as the competitive advantages that the market offers to the current and potential investors.