Financial investment market of Lithuania

Abstract

This article discuss the main notion about international standard of financial instruments and tries to explain theory using transaction cost financial method. Particularly how precision, which is one of the three most important attributes for characterizing theoretical base, can effect financial investment, investor’s choice and investment fees in a setting when customers/suppliers, as the stockholders of the firm, are included. Therefore, this article is focused on the improvement of theoretical basis of financial instrument to stimulate the development of private and small business. According to the aim and logic of the article the following tasks, based on the study of foreign experience of investment in liaison with the foreign and domestic scientists and mass media, some international standards are observed: what is convergence and whether there is any possibility of convergence between Central Asian and European financial organizations. Recommendations on introducing foreign experience in the Lithuanian investment market are discussed on the basis of analysis of experience in developed countries.