Comparative analysis of stock and bond indices of the Belgrade stock exchange in comparison with world stock market indices

Abstract

The financial market, as an environment in which financial claims are issued and transferred, expresses and realizes supply and demand for financial instruments, facilitates the connection of sufficient and deficit economic entities and the population. A condition for the normal development of the national economy are the financial markets, which represent an increasingly important part of the economic and financial system. The subject of the paper presents the analysis of functioning and the methodology of calculating the value of stock market indices, in comparison with the indices of the Belgrade Stock Exchange. Furthermore, the general goal of the research is to point out the importance of the stock market and stock exchange operations for the entire society, whether we are on the side of the buyer or the supplier of securities. The results indicate that the original owners of financial savings do not participate in the work of the stock market, as well as that the development of the stock market conditioned the creation and development of stock market indices.