Underdevelopment of the Czech capital market

The Czech capital market, even a quarter century after its revival, still has the characteristics of an emerging market, whose defining signs include: weak issuance activity, high risk-averse surplus units, a high degree of information asymmetry, low liquidity of secondary market, high transaction volatility of investment instruments and the lack of protection for outside investors. The aim of this paper is to analyze the underlying causes of underdevelopment of the Czech capital market (eg. not only imperfect institutional arrangements, non -transparent investment environment, ineffective protection of the rights of outside investors, but also low motivation for new issues from business and absent activity of the state privatization through the capital market).