The stock market is a mechanism for attracting investment in the country's economy. Thus, its development is important. The article emphasizes the role of investment funds, which makes investing massive. It is noted that at present there is only one functioning stock exchange in Georgia - the Georgian Stock Exchange, although in 2015 the Tbilisi Stock Exchange was also established. The activities of the stock exchange are inextricably linked with the activities of the central depository, which is currently an institution that confirms the rights to electronic securities, but the deponent is not always the owner of the securities. At the same time, a line was drawn between the activities of the central depository and the specialized depository.
It is noted that today the stock exchanges are formed in electronic form as joint stock companies. As for the capitalization of the stock market, in practice, when discussing the capitalization of companies, they always have in mind only the capitalization of joint-stock companies, the total market value of the shares they develop, while the capitalization of the bond market is more important.
The flow of free cash to the stock market leads to an increase in demand for securities, but starting from a certain point, profits and dividends may decline.
Among macroeconomic indicators, the following indicators have a high correlation with the sovereign credit rating: per capita income, GDP growth rates, inflation rate, the size and dynamics of external debt, the level of economic development, credit history, as well as budgetary and current deposits of the operating balance.
It also emphasizes the fact that the securities market loves scale, so the most important factor in the development of the Georgian stock market is to consider the issue from a regional point of view. However, as practice has shown, the development of the stock industry in our country is possible (2000-2007, when the National Securities Commission was the regulatory body).
The National Bank of Georgia became a permanent member of IOSCO in 2021, which means that as a result of the “first generation” reform, the capital market regulatory framework in Georgia has been brought into line with international standards.
The article gives some recommendations that will contribute to the development of the stock business in the country, namely: restoration in the law of a fundamental provision on the securities market, according to which public securities can only be traded on the stock exchange, protection of minority investors and structural changes (for example, combining the functions of registrars with a central depository), as well as the issuance of inflation-protected securities.

Keywords: Securities market, stock exchange, central depository, capitalization.
JEL Codes: G10, G18, G21

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