ТHE DEVELOPMENT OF THE PRIMARY SECURITIES MARKET IN BULGARIA - AN IMPORTANT FACTOR TO SUPPORT THE ECONOMY IN TIMES OF CRISIS

Abstract

In developed countries, the overall economic state of a country is assessed in relation to the state of the securities markets. In times of crisis in particular, markets are very sensitive and react quickly to changes in the environment. History knows many financial crises, but today humanity is facing a new type, namely the COVID-19 pandemic, which has the character of a biological war.

Investments are needed in order to get out of the crisis, which cannot always be provided by the companies themselves or by the banks. Therefore, the issue of equities and bonds on the primary markets is an alternative and very good move to raise capital. Additionally, sooner or later the crises will end, and the markets will regain lost ground. The so-called "bulls", will definitely gain from the purchase of undervalued assets, including by issuing shares and bonds. This is why, knowing the primary market, its characteristics and mode of operation will be crucial both for investors and issuers and all who believe that the future economy will be revived notably through the development of the capital market.

The purpose of this paper is to characterize the features of the manifestation of the primary securities market in Bulgaria and to show the paths to use the issuance of shares and bonds as a tool to increase the capital of economic agents and to overcome the current crisis.