The feasibility of setting up a stock exchange in Malta

Abstract

This dissertation studies the feasibility of setting up a stock exchange in Malta. A stock exchange is hypothesised as a means to facilitate the ailing investment level in Malta. Since savings is a prerequisite of investment, the savings opportunities in Malta are scanned. A stock exchange relies heavily on public companies and therefore this study analyses the existing fifty public companies to determine whether these companies are after all potentially quotable on a Malta Stock Exchange. The share capital ownership is analysed as well as the frequency of share trading. A definition of a Maltese public company is proposed to act as a yardstick in choosing the genuine public companies. The study then extends a glance at overseas experiences, in particular it summarises the Cypriot experience and how this sister Mediterranean island is preparing the way for a stock exchange. Finally, this study makes a series of recommendations which are deemed essential as part of a strategy for preparing the way for the setting up of a stock exchange in Malta. The concluding chapter gives the author's judgement and personal opinion on the results of this study.