SECURITIES MARKETS AND THEIR THEORETICAL FOUNDATIONS.
Keywords:
Securities market, market efficiency, financial theory, behavioral finance, regulation, investment.Abstract
This paper examines the theoretical foundations and practical dynamics of securities markets, emphasizing their role in economic development and financial stability. It reviews key financial theories such as the Efficient Market Hypothesis (EMH), Modern Portfolio Theory (MPT), and Behavioral Finance to explain how information, risk, and investor psychology influence market performance. Using a qualitative and analytical approach based on secondary data, the study identifies major trends and challenges affecting market efficiency in both developed and emerging economies. The findings suggest that while classical financial theories remain relevant, they must be complemented by behavioral and institutional perspectives to fully capture real-world market behavior. The paper concludes by recommending stronger regulatory frameworks, enhanced financial literacy, and balanced technological innovation to promote transparency and stability in global securities markets.
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