Hagos, Alem (PhD)Gebreyes, Samuel2022-04-012023-11-042022-04-012023-11-042022-02http://etd.aau.edu.et/handle/123456789/31099The country's economic growth can be affected by different factors, from Which Stock exchange market has an important role in terms of capital accumulation through raising huge finance in order to establish big corporations and mega projects. Hence, securities should be transferred from one to another through the stock market to enhance further investment. Moreover, the number of listed corporations, total value traded and liquidity of stock market turnover enhance the economic growth represented by real gross domestic product (GDP). This research studied Prospect and preparedness of establishment of stock exchange market in Ethiopia by analyzing the factors affecting stock market development and their importance to corporate business development as well as economic growth of the country. This research has tried to assess how the lack of a stock market affects corporate business development in Ethiopia by selecting specific business sectors on a few selected Insurance Companies. Moreover, the study is carried out utilizing a descriptive research approach and a questionnaire conducted by non-probability convenience sampling of employees from selected insurance companies and NBE, as well as qualitative and quantitative data (mixed) the study makes use of both primary and secondary data. The study has discovered the following findings: Lack of SEM makes it difficult for businesses to raise capital for expansion or further investment, discourages domestic saving, eliminates the option of using SEM as an alternative source of credit, has a negative impact on local investment and income generation from selling/buying stock, and affects skill manpower in accounting and auditing, as well as supervision and regulation. As a result, the study recommends that the government expedite the establishment of SEM, as well as intense training and the outsourcing of skilled people. Key words: stock market, market capitalization, Gross domestic product, Listed Companies.enGross Domestic ProductListed CompaniesThesis