FACTORS INFLUENCING THE PROFITABILITY OF SECURITIES ON THE ROMANIAN STOCK EXCHANGE
FACTORS INFLUENCING THE PROFITABILITY OF SECURITIES ON THE ROMANIAN STOCK EXCHANGE

Summary/Abstract: The situation of the stock exchange is important in assessing the internal and international trends, as well as in determining the possibilities of short-term economic growth, although it is difficult to establish a direct relation between the indicators. The evolution of stock exchange transactions in Romania and of the investors’ trust in the capital market is connected to a series of factors such as the return obtained by investing the available sums of money in financial securities, the state of the national economy, as well as other types of financial or nonfinancial information of national, regional or international relevance. A good assessment of the situation of the stock exchange is crucial for investors in the decision-making stage, when they have to decide if they want to invest, in the portfolio management, or if they want to “withdraw” from a specific market. Thus, it is necessary to measure the volume, the quality and the intensity of the activity of the capital market through a series of specific quantitative and qualitative indicators. By monitoring the evolution of these indicators it is possible to characterise the performance of the stock exchange and of its level of development at a specific moment. This paper focuses on presenting the main factors influencing the profitability of securities on the Romanian stock exchange.

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