Portfolio Selection on the Romanian Capital Market in the Era of E-Business

The technological development of the last decades has led to the transformation of the world economies. The capital markets have begun their journey towards electronic trading, more and more world exchanges being transformed along with the adoption of electronic trading systems. The Bucharest Stock Exchange uses an electronic trading system, the benefits of this system being described in the present paper. Essential for a functional and efficient capital market are both the trading system and the capital allocation and portfolio selection decisions. Taking into consideration these aspects, our study focuses also on the theoretical and empirical analysis of the models considered to be the foundation of modern portfolio theory: the Markowitz portfolio selection model and the market model. We conclude that the model developed by Markowitz leads to the best results.