Are Legal Obstructions Hindering Lithuanian Capital Market Growth?
Are Legal Obstructions Hindering Lithuanian Capital Market Growth?

Summary/Abstract: The capital market, being a significant part of the democratic state economy, has the task to achieve equilibrium in its money and capital markets and match the corporate investment with household savings. The efficient performance of the capital market can only be achieved if there is prudent and efficient regulation. From the research guided by these goals, the following conclusions can be made: 1. The capital market, being in the center of state economy is affected by its goals, rules and regulations. It is affecting the direct capital market regulation not only by the securities market law, but also many other related legal rules and instructions. 2. Capital market regulation efficiency seeks to accomplish the given goals, and to comply with legal principles. The most difficult task is to find the balance among conflicting goals when embodying one goal or legal principle in its full scope harms another one. If the balance is determined improperly, the regulation becomes an obstacle for development and growth of capital market. 3. Adaptation of the semantic dependencies system and the examination of goals and conflicts in securities regulation make it possible to define legal obstacles in the capital market. A regulation becomes a legal obstacle when it intends to address one goal that conflicts with another and does not take into account its effect on every interconnected goal in order to determine the balancing point where the society could benefit most. Only by considering the interconnection between regulatory goals can regulations be written to achieve the optimal balance between these goals, thus benefiting society most. 4. Most of the legal obstacles arise from the conflict between investor security protection and market efficiency goals or their sub-goals. In most instances reviewed here capital market growth is hindered, thus the primary hypothesis of this paper is supported. Among most important hindrances there are the State fiscal policy, the Stat

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