The study assessed the prospect and challenges of establishing stock market in Ethiopia. To do so, descriptive analysis is utilized and data were gathered from both primary sources as well as secondary sources. Accordingly, Primary data collected from the employees and managers of Addis Ababa Chamber of commerce and Sectoral Association, Ministry of Finance and Economic Cooperation, National Bank of Ethiopia, Private Banks, Insurance Companies, Audit firms, Accounting institutions, shareholders and managers of share company and other credible sources through interview, online survey and also refer secondary data at large. The result revealed that the reluctance of the government, inadequate laws and regulations, insufficient technological infrastructure, and low level of public awareness as a challenge of establish stock market in Ethiopia. Also the prospects include the economic growth of the country, the agenda of poverty reduction, privatization effort and unexploited resources, thus the government need to take real pragmatic measures to establish stock market and further reforming the legal, institutional and the accounting and reporting requirements is necessary. Also the media should be seen reporting more on the advantage of Stock market.
A research thesis submitted to the department of accounting and finance, college of business and economics, in partial fulfillment of the requirement of Master of Science (MSC) in accounting and finance