Financing Of Business Entities In Republic Of Macedonia Through Issue Of Bonds

Financing of the capital market is in a close relation with the offer and demand for financial resources, i.e. the interaction between the entities with surplus and those with deficit of financial resources. In the developed economies, the bond is very important instrument on the capital market, as a possibility for capital mobilization through their issuing by the business entities and as a possibility for investing free financial resources, from the investors’ point of view. The knowledge of the advantages of this kind of security is the basic prerequisite for its increased implementation in the market, as an alternative for realizing profit by the two parties, i.e. the issuer and the investor. The most usual problem for absence of this kind of security, besides the low level of capital market development, is the fact that the business entities are not informed about the possibilities offered by the bond, and about the advantages it has over the other securities. Because of that, it is indispensable each potential issuer to be informed what the bond is, which its basic elements are, the kinds of bonds, how the interest rate is determined, how the value of the bond is determined any time before its maturity etc. The purpose of this research is to obtain clear picture for the advantages of and risks from capital mobilization through issue of bonds, to make analysis of the situation in R. Macedonia and to suggest measures for higher participation of this financing source into the business entities.