Although the regulatory framework of Lithuanian capital market is well balanced ant meets the requirements of EU, market surveillance authorities are effectively functioning, Vilnius Stock Exchange is integrated into the NASDAQ trading system, the main objective of capital market, defined as accumulation of funds to investments into SMEs, is not implemented. Therefore the objective of this paper is to analyze the factors influencing Lithuanian capital market development issues and identify the ways toincrease its efficiency.

Keywords: Capital market, investments, stock exchange, factors, development.