The capital market is part of the financial market and consists of trading in financial instruments such as securities, in a regulated market and outside it. The main focus of this paper will be on stocks and bonds, as the most common subject of trading in the capital market. In the capital market, more than anywhere else, the effects of market risk and all other types of risk are possible, including misuse of information, fraud and deception. That is why it is necessary to regulate the business of this market, which is done through several laws. Financial markets are subject to national legal regulations and procedures, so the Republic of Croatia independently regulates its own financial market, ie the stock and bond market. Capital markets in the Republic of Croatia consist of investors in financial instruments, intermediaries, issuers of securities and other financial instruments. Despite the fact that from 1995 to 2000 the market capitalization of the ZSE increased tenfold (982.6%), the market was severely hit by the 2008 crisis and was not as strong as before the crisis. The current economic turmoil related to COVID-19 has hit the market again, and it remains to be seen when and how the market will be at least close to what it was before.